5 Negotiating Tactics That Kill Real Estate Sales

Negotiation is a subtle art in real estate, but skilled negotiators can usually find some common ground that satisfies all parties. On the other hand, using the wrong negotiation tactics can sink a deal quickly. Here are some negotiation tactics buyers (and real estate professionals) should avoid:

  1. Low-ball offers: Going far below market value when you make an offer damages your credibility as a buyer and can be insulting to the seller. The seller has a range in mind that they’ll accept, and if you’re not even approaching the low end of that range, they won’t even consider the offer.
  2. Incremental negotiations: Don’t continue to go back to the seller with small increases in your offer ($1,000 or less). The constant back-and-forth can grow tiresome and lead the seller to consider other opportunities.
  3. “Take it or leave it”: Try not to draw a line in the sand with your initial offer. The seller can get defensive and consider other offers if you immediately show that you’re unwilling to budge. Even if it’s true, don’t make a show of it.
  4. Nitpicking after inspection: Obviously if inspection reveals a major issue, it should be factored into the final sale price. But insisting on a lower price for every minor repair can put negotiations in a stalemate.
  5. Asking for more, more, more: Some buyers will request that the sellers throw in add-ons like furniture or appliances that weren’t included in the listing. Try to avoid giving the seller a reason to build up resentment and think that you’re being greedy.

View All San Diego Homes for Sale Here

Negotiate

My San Diego Real Estate Predictions for 2014

My San Diego Real Estate PredictReal estate forecast for 2014 by san diego real estate agent wesley guestions for 2014:  2013 was a firestorm for San Diego real estate.  For the first half of the year, we experienced a strong sellers market with multiple offers from home buyers on just about anything with walls, a door, and a roof.  By the second half of 2013, San Diego real estate inventory levels started to rise along with an uptick in interest rates.  The result was a return to a balanced or normal real estate market.  So what is in store for 2104 in San Diego?

  1. Prices Will Continue to Rise but at a Sustainable Pace.  San Diego will see an increase in home inventory as more homeowners achieve positive equity and sell their homes.  This will include the “move up” home seller and the retirees looking to “down size”.
  2. Interest Rates Will Continue to Rise.  The Federal Reserve announcement that it is reducing their purchase of mortgage backed securities should create an upward trend in interest rates that could slow price escalations.  We will be at a or near 5.2% by close of 2014 as compared to approximately 4.5% in the present market.
  3. The Number of Investor Purchases Will Decline but Remain Substantial.  Although prices have risen, there are still plenty of decent deals to be had.  The renovation / flip market will continue to dwindle but investors looking to purchase San Diego real estate and hold for the extended term will remain prevalent in the market.
  4. Population and San Diego Job Increases Will Continue to Push Real Estate Prices Higher.  Favorable job reports and paradise type weather will continue to keep demand high for San Diego real estate.  There are more people and families than housing currently available.
  5. New Construction Will Rise from the Ashes.  Home prices continue to rise and justify new construction, particularly given land, labor, and materials costs. In addition, lenders will make loans and credit easier to obtain for smaller builders and developers.

Questions?  Comments?  Please send them my way anytime!

My Five Best Tips For Improving Your Credit Score

how to improve your credit score

Destination Best Credit!

My Five Best Tips For Improving Your Credit Score:  It’s no secret your credit score is of the utmost importance when applying for a mortgage, home loan, or any type of credit.  The terms “well qualified” and “for those who qualify” come to mind.  Here are five tips for improving your credit. It’s not about quick fixes, but responsible financial activity over time.

  1. Get a credit card: OK, this may seem counter intuitive, but let me explain. When used correctly, a credit card can be an effective tool for building credit. Charge a few budget-conscious purchases each month, and pay the balance off before your due date.
  2. Keep your balance low: This is the other side of the coin with credit cards. Try to only charge for items you could pay for out-of-pocket, and try to stick to a balance of only 10 percent of your credit limit.
  3. Fix credit errors: You’re entitled to free credit reports each year, so take advantage and review your report for any possible errors, such as incorrect limits or closed accounts.
  4. Leave paid debts on your report: Paid off debts like car loans show that you have a history of paying your debt on time.
  5. Ask! If you’re looking to pay off a debt quickly, it can’t hurt to ask the lender to lower your interest rate. You can’t get what you don’t ask for!

Questions?  Comments?  Please send them my way anytime!

Pacific Beach Real Estate: Market Report for October 2013

Pacific Beach Real Estate Market Report for October 2013:  The Market in Pacific Beach is moving towards a balanced market.  This is a healthy direction to go after massive gains over the last 12-15 months.  The annualized median price increase for attached homes in Pacific Beach is astounding.  Over 43% jump in prices.    This is very welcome news to owners whom purchased real estate in Pacific Beach before the crash in 2007.  Please review the figures below:

The Pacific Beach Real Estate Market Report for October 2013:

Single Family Residence (Detached Homes)

  • 64 Active Listings for Sale as of October 18th, 2013
  • Average Days on Market to Sell: 77 Days (October 2012 was 49 Days)
  • 18 Total Sales for October 2013 (October 2012 had 10 Total Sales)
  • Median Sales Price for October 2013: $806,500 (October 2012 was $718,750) ▲ 11%
  • 3.5 Month’s Inventory (64 Active Listings / 18 Sales) Seller’s Market

Condominiums and Town Homes (All Attached Homes)

  • 88 Active Listings for Sale as of October 14th, 2013
  • Average Days on Market to Sell: 43 Days (October 2012 was 45 Days)
  • 27 Total Sales for October 2013 (October 2012 had 10 Total Sales)
  • Median Sales Price for October 2013: $485,000 (October 2012 was $277,000) 43%
  • 3.25 Month’s Inventory (88 Active Listings / 27 Sales) Seller’s Market

See All Pacific Beach Real Estate for Sale in the 92109

Summary: Overall, the Pacific Beach Market is very healthy.  The market has slowed down from the buyer frenzy we saw the last year or so.  Prices will continue to rise but in a steady sustainable manner for the foreseeable future.   For potential Pacific Beach home buyers, this is a good time to purchase property.  The seasonal slow down is here and sellers are willing to negotiate.  This is also a good time to sell Pacific Beach real estate.  The home buyers looking tend to be more serious than the “lookie loos” in the summer and spring months.  more serious buyers means less low ball offers, shorter time on market, and less showings.

Questions? Comments? Please send them my way!