Realtor Viewpoint

Realtor's advise on emotions
Don’t let your emotions get the best of you when negotiating real estate.

Realtor’s knowledge can help you avoid mistakes in negotiations
According to Danny Frank of Prudential Anderson Properties, www.andersonprops.com  & the 2013 chairman of the Houston Association of Realtors, www.har.com in Sunday’s May 19, 2013 article from www.chron.com, negotiating in a real estate transaction is exciting or terrifying, you won’t get the things you don’t ask for. If there is something special you want, speak up! Your Realtor, Laura Hill Realtor, www.localkatyrealty.com, is an expert at hashing out contracts so both parties are content. Whatever your opinion of the process of reaching consensus may be, here are some mistakes to avoid when negotiating a deal.

People, including some real estate agents, often let emotion dictate their negotiations. I recently had an agent lose their cool, lost their perspective and threatened a law suit 2 days before closing over $100 worth of curtains. It can get really ludicrous sometimes because agents allow their emotions control way too much of the current situation instead of coming to a calm resolution of issues like I always prescribe to. Cooler heads prevailed and the closing happened on the closing date.

Don’t get angry when a buyer presents a low offer for your home. He’s not insulting you, and he doesn’t think your house is poorly maintained. The buyer needs to start the negotiations somewhere. He may be testing the waters to see how low you’ll go. Or his negotiation tactics could have been formed where negotiating is handled differently. Whatever the case, if you see the offer as an insult and choose not to counter, you may be cutting off the process that would have resulted in a sale.
On the buying side, don’t get bent out of shape if a seller rejects your offer or counters with his original asking price. You may have determined that you presented a very fair price for the house. Good for you. Try again or move on.
It’s not personal!!!
Keeping emotions out of a deal also means maintaining a business relationship & not feeling sorry for the other side. If the seller rejects your fair offer based on “needing more money for my retirement fund,” ask for a reason that’s relevant to the property sale. On the other hand, if a buyer said they can’t afford your asking price, but you believe you’re asking fair market value, stick to your guns. Maybe yours isn’t the house for them.

Questions
What’s the lowest price you’ll accept for your home? What concessions, if any, will you make? Answer these questions before you put your home on the market and revisit them if your home isn’t seeing the activity you hoped for. And for buyers, what’s the absolute most you can afford? How close are you willing to come to that number? Whether you’re buying or selling, be sure to share this info with your Realtor so he or she knows your priorities.

Splitting the difference
Whether you’re buying or selling, don’t allow an extreme offer to affect your counter. Are you willing to jeopardize the sale of you house because the buyer wants the entryway mirrors to stay? As a buyer, how will your monthly payments really be affected if the seller won’t drop the price another $5,000? Sometimes you have to take a step back to make sure you’re not over emphasizing one detail that is standing between you and your objective. This is when your Realtor should come in and explain the “real” pros & cons of each transaction in order for the buyers & sellers to have a better perspective and view of the bigger picture. At Laura Hill Realtor, www.localkatyrealty.com we are always putting our clients interest first to make sure they receive the best service and to deliver their needs to them and their family. We can help you analyze the current market and put together a specific, detailed buying or selling strategy that will always benefit you.

Real Estate Area Housing Starts Rose 33% in 1st Qtr. 2013

New Housing Starts up 33% 1st quarter 2013
Houston area up 33% in 1st qtr.

According to Nancy Sarnoff of www.chron.com, activity in Houston’s new home market, still just about half of what it was during the housing boom (2006) is heating up again. Area housing starts rose 33% during the first 3 months of 2013, as more buyers jumped into the market. The inventory of existing houses for sale has been shrinking as demand spikes & owners remain cautious about selling. The result has been a seller’s market in many neighborhoods. Homes are selling as quickly as 1-2 days. According to Metrostudy, www.metrostudy.com builders started 6,462 homes in the 1st Qtr. 2013. It was the first time in five years that quarterly starts went above 6,000. New Housing starts are especially up in the Cinco Ranch (Katy, Tx) www.cincoranch.com & The Woodlands area, www.thewoodlands.com. The time to sell is obviously now, but with home sales prices, construction costs going up, & low interest rates, the time to buy is also now. Homes in the Katy & Woodlands areas are a hot spot for real estate buyers & sellers now. Like I always say, not having a Realtor agent when buying/selling a home or property is like going to court without an attorney. Look me up at www.localkatyrealty.com.

Federal Reserve maintains its low interest rates

According to the associated press on Thursday, May 2, 2013, the Federal Reserve plans to keep short-term interest rates at record lows at least until unemployment falls to 6.5%. And they will continue to buy $85 billion a month in Treasury & mortgage bonds. The bond purchases are intended to keep long-term borrowing costs down & encourage borrowing & spending. Unemployment is at 7.5% now, so first time home buyers, empty nesters, or home owners who want to step up, now is the time to consider purchasing or selling because these low historic interest rates will be going up soon. Look me up at http://www.localkatyrealty.com