Do you typically negotiate a price on a FSBO verbally, or with the offer/counteroffer faxing of contracts? If verbally, when an agreement is decided on, should I be familiar enough with the standard contract to complete it myself, or should I call in a real estate agent at that point to draft the contract under the agreed upon terms?
Howdy TravisTx:
The contracts are made to be filled in by almost anyone. A Realtor could be some help if they do not charge very much just for helping fill in the blanks. Better to get a copy and practice buying a friends property or just read it over a few times to get familiar with it.
How to make an offer. I just like asking what their bottom dollar is. You will get many responses:
Make an offer
I do not know maybe $______
We are firm at our asking price. We are netting zero.
I need to ask the spouse.
We just started marketing and are not willing to take less yet.
By asking a question like this you are trying to find out how motivated they are. Do they have a dead line to sell by a certain date or are they just selling for no reason or just testing the market.
Once you have gotten their bottom dollar then try to get some concessions or even a bit lower price. This is really the fun part. I love haggling at yard sales and it is good practice for buying property and hiring contractors as well.
Here is a great example. I saw a dirt bike for $500 and was going to offer $400. I told the lady I was going to call my son to see if he was interested in helping but the bike. After I hung up I was getting ready to make the offer. I told her my son was willing to pay half. And she said OK but $250 was their bottom dollar. I just saved $150. I do not know what she would have said if I had asked her what her bottom dollar was but she assumed I made a $250 offer and accepted. I would not have had the guts to offer only $250. You just never know folks motivation. If you not make some offers you will never know.
LOL
Thanks Ted. I found a copy of the standard contracts on the TREC web site. Any idea of where I can get additional descriptions regarding what some of the verbiage means, and what should be written where?
i think there is a real estate dictionary on this site somewhere… can’t seem to find it right now. i’m sure you could find one online, just google it, or go to any decent book store and they should have one.
i like ted’s example of negotiating. i was fortunate enough to learn how to negotiate back when i sold cars. i know what you’re thinking, its just hustling people out of their money, but there is a right and wrong way to do it, you can do it without lying or cheating them. always ask for less than you think they would ever take–way less than the listing is for–because (just like in ted’s example) you can’t know what they’ll bottom out at unless you ask. if you don’t ask you’ll never know what you could have got them down to! don’t be scared of them, you’re just asking questions, the worst they can say is “no.”
talk to them and get to know them, and they’ll start telling you everything you need to know (and they won’t even realize it!)…they’re moving out of state in 3 days or already have another house and can’t afford both, etc. etc.
thank you! i knew it was around here somewhere 