The Middle Ground

“If your client would go up another $150,000, I think I can get the Seller to sign the agreement," the listing Agent said.

​"No doubt," I agreed (We'd gone back and forth for a few days without reaching a meeting of the minds.) "but why should the Buyer bid against himself when there are no other offers at the table?"

"Because he doesn't have to sell," she responded, "he'll take the property to the rental market if he doesn't get what he wants." (This is nearly every Seller's argument of last resort when up against offers that fall well short of their expectations.)

"That's certainly his prerogative" I said, "but my Buyer is in no hurry and will happily wait for the next property to emerge . . . the comps don't support more."

With all due respect, I don't fault Sellers for wanting more, and he's certainly not alone in WANTING more, but time is definitely not on his side. Statistically speaking, the longer a property sits on the market, the less likely the Seller will achieve a higher price.

And while we know this to be true, Sellers rarely believe it. (The first offer is almost always the highest and best.) Nor is this particular Seller a lone example. A few weeks ago, I inquired about a different property that's now been on the market for MANY months, and was told that the Seller has declined seven offers to date. (Seriously???)

"What's up with that?" I asked.

"No one has stepped up with enough," the Agent said. "The Owner is unwilling to sell for less." (New flash: then she's unlikely to sell it.)

Listen up! With seven offers in hand, that IS the market speaking loud and clear.

It's an age-0ld dilemma to be sure: Sellers want more, and Buyers want to pay less. Finding the middle ground is where the art of the deal takes place, but let's be clear . . . when push comes to shove, it's a willing and able Buyer that qualifies the value of any given property on any given day - not the Seller.

But in a world where sales prices are often subjective, making it difficult to discern "value," many Sellers mistakenly believe they get to decide where value lies with respect to their properties. (They don't.)

Which isn't to say that the Sellers have no power - they have plenty - including removing their properties from the market, moving back in, or renting them out and becoming landlords. (Sellers aren't required to accept an offer just because it's submitted.) But they don't have the power to control the marketplace - nor do their Agents - no matter how experienced. We can leverage, negotiate, compel, and create demand, but we can't force anyone to pay more than the market will actually bear, or force Sellers to accept less than they want.

That being said, take heed: Buyers are now having to absorb not just the cost of the purchase, but sewer laterals, sidewalk repairs, knob & tube remediations, and in some instances, the buy-side commission, as well. In short, buying a home has become a more expensive proposition than it's ever been. Expect savvy Buyers to deduct these costs from their offer price, and act accordingly.

Finally, if top dollar is the intended goal, you may have to invest more into the preparations for your home to realize a higher return. Conversely, if you are selling "as is," you should expect less. When it comes to what you think your home is worth, be critical about the property and ask yourself if you'd be willing to pay the high price you now expect?

In other words, if the intention is to move on - then it's important to look at the market realistically and negotiate in good faith to find the middle ground. (Move on!) It absolutely exists if you are willing.

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