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Does Art Matter In Real Estate?

Does art matter in real estate?

Well, unlike fragrances and pleasant scents, I will tell you that art matters. Art really matters.

There are three things that art does to a home that you’re selling:

1. Art defines space. When you put a picture on a wall, it gives the viewer a subconscious feel for how big that wall is.

"Art focuses the eye and elates the viewer."

2. Art helps direct the focus in a room… and makes it seem bigger! In real estate, bigger sells. The picture on the wall not only makes the wall seem larger, but it also makes the house seem larger. Art also focuses the eye and elates the viewer.

3. Art sends a message. If you’re selling a home, framed pictures on the walls say something about who you are. It can send buyers a message about how confident you are as a deal partner, how established you are, and it’s also lovely to look at.

So in the end, yes, I think art matters. If you want to talk about art in real estate, reach out to me. I’d love to have that conversation with you.

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The Scent of a Ruined Transaction

When you’re selling real estate, it turns out, smell does not sell. It sounds a bit contrarian, but sellers should avoid manipulating scents to help sell their homes.

In 2014, The Wall Street Journal published a great article about this very topic. Essentially, it laid out a few risks that are associated with using scent to attract homebuyers. Smells create a short-term effect, but it can also do the following things:

  • It can seem gimmicky. Selling real estate for hundreds of thousands of dollars is not the same as selling Cinnabon.

  • It can miss the mark. Some people like the fragrance of certain colognes, perfumes, flowers, and candles—and some people don’t. Everyone is different, and you want to cast the widest net possible to attract the best possible price. To do that, you need to be neutral. Present your home like a museum or a hotel, neither of which are defined by strong smells.

"If you want to sell a home for top dollar the way I sell homes for top dollar, don’t rely on smell."

  • It can distract. If there’s a beautiful cookie smell permeating the house, I won’t necessarily think, “I’d better pay full price for this home!” I’ll probably just think about cookies.

  • It can ruin a deal. Smells can make people feel disgusted, complacent, comfortable, or great. But guess what? You’re selling real estate—that’s not your job. Your job is to make the buyer feel like they need to sign a contract by tomorrow or risk losing the home. Smells don’t do that.

I know this view isn’t what most people think, but if you want to sell a home for top dollar the way I sell homes for top dollar, don’t rely on smell.

If you have any further questions about this, feel free to give me a call or send an email. I’d be happy to speak with you.

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What Does a Real Estate Broker Really Do?

Some buyers and sellers are confused as to what the role of a real estate broker truly is, so I’d like to clarify this for all of you today.

For one thing, brokers are experts on housing values. They know how the size, style, location, and features of a home will impact its value. It takes a lot of knowledge and skill to have such an intimate understanding of this particular point.

Next, brokers are also experts on real estate contracts. Brokers help their clients navigate the process from start to finish. Beyond this, brokers can leverage their wide network of professional references at every step to ensure that you, their client, are well taken care of. A quality broker will have connections with plumbers, electricians, painters, stagers, photographers, and many other such professionals who can assist you with your real estate goals.

"Real estate brokers are service providers."

In short, real estate brokers are service providers. It’s their job to help you get the best results out of your real estate experience.

This is why, usually, brokers pay for every single expense related to marketing your property. This means they pay for professional photography, staging, signage, and other similar services. However, this doesn’t mean they’ll pay for the improvements you make before you sell. If you want to change out your countertops to get a higher return, for example, you’re still responsible for this expense.

If you have any other questions or would like more information, feel free to give me or my team a call or send us an email. We look forward to hearing from you soon.

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How Can You Spot a Self-Centered Agent?

I’ve been in this business for 14 years and there’s no way I could have achieved the level of success that I’ve enjoyed if being service-oriented wasn’t central to my business. All too often, agents lose sight of the fact that we’re in a service industry.

With that in mind, what three sins are committed by the agent who, rather than taking a service-oriented approach, is self-centered?

1. They have “commission breath.” This is the agent whose sole focus is to close you and collect their commission at the expense of serving your needs. Whether it’s to help you sell your current home or buy a new home, your agent should be working within your desired criteria to bring that goal to fruition.

"Like in the food service industry, you’re in the restaurant because you’re hungry and, no matter what you order, the servers will make sure you’re fed."

2. They don’t have a “big picture” point of view. Because they don’t do a lot of business, when a potential deal comes along, self-centered agents feel like they need to force the issue. As a result, they forget the service facet altogether. Like in the food service industry, you’re in the restaurant because you’re hungry and, no matter what you order, the servers will make sure you’re fed.

3. They don’t listen to your wants and needs. The self-centered agent doesn’t care to be amenable to your schedule. Not only that, but they aren’t sensitive to your experience, nor are they interested in fulfilling your needs—whether with the closing schedule or conditions and terms you’d like to set.

Unfortunately, real estate agents, in general, are sometimes tarred with the same brush as these self-centered types, when, in fact, the agents I work with on a daily basis love what they do and they love the clients they serve. It’s important to work with an agent of that caliber and steer clear of the ones I’ve described today.

If you have any questions about how an agent should behave and you feel as though you’re not receiving the proper level of service, go ahead and call me at 212-965-6051 or email me at David.Rosen@Elliman.com. I look forward to speaking with you!

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3 Reasons a Title May Be Defective

There are three main types of defects that can appear on a title, and we’ll cover each of them today.

1. Building violations. If you live in a co-op, this applies to everyone living in the property. Building violations aren’t uncommon and, sometimes, aren’t very serious. It usually relates to an incomplete building permit or some feature of the building being out-of-code.

2. Liens. A lien is an unpaid sum of money owed by the homeowner. Properties can’t be sold until these fees are paid off. If it isn’t paid off, the lien is attached to the property, meaning the next owner would unknowingly become responsible. To avoid this, liens must be disclosed during escrow.

3. Judgments. If the property is subject to an ongoing lawsuit or has unpaid taxes still owed upon it, then it cannot be sold until these judgments are paid.

If you have any other questions or would like more information, feel free to give us a call or send us an email. I look forward to hearing from you soon.

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Do Credit Scores Really Matter?

Credit scores, also known as FICO scores, are numerical rankings meant to reflect an individual’s creditworthiness. In other words, these scores are meant to show credit issuers how likely you are to repay debt.

FICO scores were first developed in the 1930s by Manhattan department stores looking for a way to verify the credibility of customers seeking to purchase items on layaway. Since then, though, these scores have gained a much greater significance.

Your score will vary depending on which of the three national credit bureaus—Equifax, Experian, or TransUnion—you pull your score from, but the difference will be insignificant. Your score with each of these entities will be based on how consistently you meet payments on your lines of credit.

"Being attentive is the best thing you can do for your own credit score."

A score of 620, for instance, typically indicates 12 consecutive months’ worth of on-time bill payment. Anything below 680 is considered sub-prime, but anything below 620 is like having a score of zero. You will have a very hard time getting approved for any line of credit unless you surpass this threshold. To have truly excellent credit, meanwhile, you need to have a score at or above 720.

If your credit isn’t exactly where you’d like it to be, don’t panic; this is incredibly common. Most people have a credit score that’s far from ideal. And, thankfully, there are a number of ways to improve your score. For one, pay close attention to your credit limits, as exceeding them will hurt your score.

Ultimately, being attentive is the best thing you can do for your own credit score. If you have any specific questions about how to improve your score, or about any related topics, feel free to give me a call or send me an email. I look forward to hearing from you soon.

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How Agents Leverage Social Media in Real Estate

Social media is a powerful tool that many professional real estate agents take advantage of. There are three ways your Realtor should be using it:

1. Marketing property on social media platforms. People spend a lot of time on these outlets, and agents want to be capturing their information. Facebook has algorithms that help us capture leads and find potential buyers.

"75% of internet access is done through mobile devices."

2. Keeping it mobile friendly. 75% of internet access is done through mobile devices, and agents want to capitalize on this market. Keeping a social media presence means having quick videos and easily digestible information.

3. Using it as a special feature. Social media itself isn’t an agent’s go-to platform—that’s what the MLS and real estate websites are for. Using social media is simply taking advantage of a great tool.

If you have any questions about social media marketing or would like more information, feel free to reach out to me. I look forward to hearing from you soon.

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A Great Tool for Agents & Homebuyers

Have you heard of an “I have a buyer” letter? If not, these letters are a great way for agents to meet sellers, which also makes them a great tool for homebuyers.

If you were working with me, for example, we’d send out 1,000 to 2,000 letters (remember those?) to people whose homes are similar to what you’re looking for in the event that we can’t find a home like that on the open market.

"These letters are a great way for agents to meet sellers, which also makes them a great tool for homebuyers."

This letter essentially tells the recipient that you’re looking for a home to buy. I know what you’re thinking: “If they wanted to sell their home, it would already be on the market.” Here’s the thing: There are a lot of people out there who are thinking about selling their home but, due to a variety of circumstances, just haven’t gotten around to it yet.

What are the key elements that make a great “I have a buyer” letter? First, it has to be authentic—I always try to personalize my letters in order to create a rapport with potential sellers. Next, it has to be specific about what you’re looking for and how they can benefit from selling their home to you instead of putting it on the market.

All in all, this is one of the best tools a broker such as myself has at their disposal.

If you’d like to know more about how these letters can help you or if you have any other real estate questions, don’t hesitate to reach out to me. I’d love to help you.

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How Income Relates to Housing Costs

The No. 1 factor in determining what real estate is worth in any given area is the income of the people living there.

This is an abstract concept that a lot of people don’t understand, but it’s the primary reason why a 1-bedroom apartment in New York City costs anywhere from $500,000 to $1 million but you can find a 6-bedroom house with a 4-car garage and a swimming pool in the same price range almost anywhere else in the country.

To give you a better idea of this correlation, let’s look at the specific ratio between income and housing costs.

A good financial rule of thumb is that you should spend no more than 35% of your gross monthly income on housing. For example, let’s say you make $120,000 per year (or $10,000 per month), which means you’d put $2,000 of that toward your housing costs. Let’s also imagine that you have car payments and student loan payments that cost $1,500 a month.

"The next time you’re buying a home and you have to think about appreciation, consider this correlation."

Doesn’t that seem light? Why can you only spend $2,000 on housing costs when you make $120,000 per year?

Let’s dive a little deeper. If you make $120,000 at a 30% tax rate ($36,000), that means you only take home $84,000 of that income. Each month, $2,000 of that goes to housing, while $1,500 goes to other expenses. After those expenses, you have $42,000 left. If you want to put 10% of that total into your savings, that equates to $8,400. All told, you’re taking home $646 per week out of that $120,000 yearly income to spend on whatever else you need.

So, the next time you’re buying a home and you have to think about appreciation, consider this correlation.

If you have any more questions about the correlation between income and home values, don’t hesitate to call or email me. I’d love to talk to you.

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How Your Monthly Costs Can Affect Your Equity

No matter what sort of property you buy, there are costs you’ll be paying each month. Today we’ll be talking about how these can affect your home equity.

Equity is a term that describes how much money you’d have if you sold your home. If you have a $100,000 mortgage and could sell for $300,000, you have $200,000 in equity.

Monthly costs include property taxes, common charges, maintenance fees, utilities, etc. These monthly costs are often a significant factor in your home equity.

If you live in a land-lease building, for example, fluctuating monthly costs can negatively impact your equity. If somebody raises the rent on the property that you “own,” it takes away your equity growth.

"Monthly costs are vital to understanding a home’s current and future equity."

Utilities also play a role in hurting equity—an energy-inefficient home means high utility costs. People can spend hundreds on cooling in summer and hundreds more on heating in winter. This also hurts landlords who pay these bills.

Properties with higher taxes won’t increase as much in value. If a home is $1 million and another is $500,000, but the first home has zero monthly costs while the second has $4,000 each month, the $1 million home will sell in a heartbeat. Despite being much cheaper, the $500,000 home will be much harder to sell—in some cases, property taxes can make a home unable to be sold at all.

Monthly costs are vital to understanding a home’s current and future equity. If you have any questions or would like more information, feel free to reach out to me.

A 33% debt-to-income ratio for two prospective purchasers. At 3.5% their income must be at least $226,000 a year whereas at 5% the income must be $257,000 a year.

A 33% debt-to-income ratio for two prospective purchasers. At 3.5% their income must be at least $226,000 a year whereas at 5% the income must be $257,000 a year.

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3 Key Elements of Rental Income

Throughout my career, I’ve helped to manage hundreds of homes, and I’ve owned rental properties myself, so I’m well aware that rental income incorporates many factors that property owners need to consider. Here are three key items to think about in terms of producing income from a rental property:

1. Tenants are impulse shoppers. Typically, renters will select a home much quicker than someone who is in the market to purchase a home. Often, renters will only look for a few weeks to a couple months, whereas homebuyers may search for several months before finding one they’re willing to make an offer on. That in mind, if you present a property that is clean, has nice appliances, and has good photos to review, you can get 20% more in rent than if you don’t do those things. Don’t underestimate the emotional experience of seeing a home—that impulse is so important. You don’t want anything that will detract from people diving in.

"Typically, renters will select a home much quicker than someone who is in the market to purchase a home."

2. Good management is key. Once you have a tenant in place (or at least an applicant), make sure that they have access to someone who is easy to pay rent to, treats them with respect, is easy to communicate with, is honest, and has good reviews online. Additionally, it’s a myth to say that a landlord has no rights and that if a tenant doesn’t pay their rent, there’s nothing the landlord can do about it. As a landlord, you can absolutely do everything to get the money you’re owed.

3. Monthly rent fluctuates with the market. Because of inflation, the improvements you make, the economy, and the housing market, rents do go up. Now, we encourage people to be homeowners, and we help people to save money to buy a home, but 70% of the population rents. Those people are signing up for something that is increasing in price. It’s usually the case that rents go up every year, sometimes by 3% and sometimes by 10%. But when you’re a landlord, don’t focus on 12 months—focus on the next five years. Using this period to do your projections is a key element to doing improvements for rental income.

If you have any other questions about real estate investment, either in New York City or nationally, I’d love to speak with you soon. Don’t hesitate to reach out to me.

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4 Tips for Carrying Out a Well-Organized Open House

Each week of the year, I conduct at least one open house and, sometimes, I do as many as four. As a team leader, I oversee multiple agents, which allows for exponential development in the number of open houses we do.

In fact, we’ve established most of our business from the strangers we’ve met at open houses. Here are some tips for how you can do the same and cement yourself as an authority on all matters related to real estate.

1. Play some music. My specific go-to playlist is Spotify’s “Hôtel Costes.” Douglas Elliman, an employee of my company and one of the top agents in the world, has a business partner who has cited this as his music of choice for open houses.

2. Adjust the temperature based on the season. In the summer, the home should be well air-conditioned, and in the wintertime, make sure the heat is at a cozy setting—you’re going for absolute comfort here.

"Your agent’s ability to secure a higher sale price for your client hinges on these follow-ups."

3. Have fact sheets about the home readily available. Not having these on hand for each and every buyer that visits the home gives a clear signal that your agent is disorganized and ill-prepared, which doesn’t go over well with a potential buyer. My team and I not only supply fact sheets, but we also offer a buyer’s guide, a seller’s guide, our listing statistics, and a social proof (this is a series of images of the homes we’ve sold in the last year).

4. Ask those in attendance to sign in and include their contact information. Further, make sure you monitor the sign-ins closely. A cardinal rule is to never use a pen—but why? Well, through trial and error, I’ve learned what a hassle it can be to try and decipher phone numbers written in chicken scratch. And what if one person doesn’t even leave a phone number? Everyone that comes in thereafter might follow suit and, as a result, you’re left with avoidable missed opportunities. It’s incumbent on the agent to extract as much information as possible from each person in attendance. Their ability to secure a higher sale price for your client hinges on these follow-ups.

If you have any questions about how to conduct the perfect open house, please reach out to me today. I look forward to speaking with you!

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Capturing the Appeal of Luxury Homes in Terms of Price

When we use the word ‘luxury,’ what do we mean? In New York City, by definition, a luxury property is one worth more than $4 million. In the bigger picture, the word connotes something like a Lamborghini, Ferrari, or a Rolex—something more expensive than a lesser version of it would cost. Luxury items are things that people buy because they love them and see them as cool and cutting edge.

Now, when people look at luxury real estate, they may or may not expect some negotiability; I don’t think that Ferraris are highly negotiable, and when I think of penthouses, I know they sometimes sell for asking price, and they sometimes sell for less. In the last 30 days in New York City, over 100 properties sold for more than $4 million, according to an Olshan report.

"In New York City, by definition, a luxury property is one worth more than $4 million."

As real estate professionals, we want to use round numbers to price a luxury property and create impulses for the buyer. While it won’t necessarily skyrocket in value, we want to convey confidence that this asset’s price is in line with the coolness that it projects. Optimistically, there’s a buyer out there that will marry with that price.

If you have any questions about the luxury market, I’d love to speak with you. Who doesn’t want to talk about the most precious and beautiful real estate in the entire world?

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3 Key Tips About Pricing a Property

Over the past two years, my average sales price was 99.7% of the last asking price, and my median days on market was 35 days. I am the foremost expert on listing homes and getting the price I want in the New York City resale market. But that’s not the product of anything other than fastidious attention to detail and working with both buyers and sellers. Here are some of my tips for pricing properties:

1. Price things at round numbers. People tend to be more comfortable with going over the asking price of a property with a rounded number, but less so with complicated numbers. I also think that when there’s a “99” at the end of a price, it’s a subconscious invitation for buyers to lowball you.

2. Don’t price per square footage. Not all square feet are the same; pricing this way presupposes that hallway square-footage and bedroom square-footage are similar, which they’re not. Price-per-foot is a way of manipulating numbers, and it’s often lied about in NYC co-ops. It’s dirty data.

"I am the foremost expert on listing homes and getting the price I want in the New York City resale market."

3. Buyers are more informed than you may think. When someone buys a home, they’re typically taking all the money they’ve saved up, plus another invaluable asset—their time—and moving both into that new home. If you don’t think that they’re an expert on what similar homes in the area are selling for, you’re wrong. If you price your property outside of the very tight field of their expectations, they will immediately recognize your weakness and either avoid you or lowball you, since they don’t feel like they’re missing out. Since buyers are so well informed, you have to entice them with your price.

Have you ever gone to a department store and seen, for example, a suit you really liked that was priced at $2,000, and then later found the same suit on sale for $375? That’s the way we like to price things: by first creating an anchor price (the $2,000) and then coming under that anchor price. There is a psychological principle behind that strategy, and I’ll discuss it more in a future video.

When it comes to questions about pricing a property, the thing that real estate professionals are the foremost experts on, please reach out and contact me. We’ll look at supporting data for anything you’re interested in buying or selling. As you can tell, I’m very passionate about this topic. I hope to hear from you soon!

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How Real Estate Became What It Is Today

We all know what real estate refers to, but do you know where the phrase “real estate” actually came from?

Well, way back during a time when only kings and queens could own land, the term “royal estate” was used to refer to their property. Eventually, this privilege was extended to others of high societal standing, like knights, and the term evolved to reflect this change. So, “royal estate” became “regal estate.”

But as time went on, the merchant class became more powerful and what we now know as “real estate” was eventually democratized. This made it so that more and more people were able to own property than ever before.

"The fundamental right to own property is a founding principle of any democracy, and this is how we’ve arrived to where we are today."

Within America’s own history, the right to own property was deemed so essential to our foundation that before our three unalienable rights were revised in the constitution to be “Life, Liberty, and the Pursuit of Happiness,” they were “Life, Liberty, and the Pursuit of Property.”

The fundamental right to own property is a founding principle of any democracy, and this is how we’ve arrived to where we are today. Our current real estate market is the product of history, and we’ve certainly come a long way.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

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The Qualities of a Great Buyer’s Agent

Buyers, like sellers, need someone to coach them and help them make sure that the process is as successful as possible. Trust me when I tell you that buying a home without a buyer’s agent is crazy, like giving birth in the woods outside a hospital. So how should buyers pick their agents?

If you want to pick not just an average agent but a great one, you should first check their online reviews. Myself, I have almost 100 five-star reviews. Why is that? I’ve had tons of success getting people great deals, and also because my team is compassionate, honest, educated, and focused.

It’s also important to remember that a great buyer’s agent is not a one-man band; they’ll have a whole team behind them, helping carry the transaction out to its end. In our case, we’ve got the biggest company in New York City, complete with a paid team manager on call to help with all sorts of things. If the agent doesn’t have an established presence, then they’re really just trying to force you into whatever works for them, not what works for you.

"A good buyer’s agent is someone who’s informed about many things, including the news, culture, and science."

Finally, work with someone who is educated. I don’t just mean educated about the market, though that is obviously vital. I also mean someone with a college diploma, a master’s degree, or equivalent. Why is that? Well, educated people are the ones who are buying real estate, at least more than those who didn’t complete high school are. A good buyer’s agent is someone who’s informed about many things, including the news, culture, and science; this will allow you to relate to your clients, which will translate into trust. This, in turn, translates to helping you get the best deal possible.

If you have any other questions about how to pick a buyer’s agent, I’d love to speak with you. Feel free to reach out to me, and I’ll respond to your message quickly.

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5 Tips for Finding the Right Listing Agent

If you’re in the process of interviewing listing agents for the right to sell your home, here are five tips that will help you pick the right one:

1. Ask for reviews and references. If you were considering hiring me, for instance, I’d encourage you to reach out to other sellers who’ve hired me so you can learn about their experiences. You can also check an agent’s reviews online.

https://www.zillow.com/profile/thedavidrosen/#reviews

https://thedavidrosenteam.elliman.com/testimonials

2. Weigh the pros and cons of hiring a local expert. Many buildings have a resident agent who’s made a small fortune selling their neighbors’ homes over time, but these neighborhood experts can limit what you can get for your sale price. Not only can they be sensitive to their reputation and be less bold, but they typically aren’t up to speed on crucial factors like population movements.

"If you follow these tips, you’ll pick the right agent and love the choice you made."

3. Inquire about sales statistics (e.g., how many homes an agent has sold in that last 12 months). I provide all of my seller clients with my listing statistics, including my median days on market and my median sale price.

4. Ask if they’ll customize a marketing strategy for your property. Each property needs a game plan. An experienced agent, such as myself, should have many strategies for different types of situations. In addition to knowing what to do, they should have a team in place to implement their strategy.

5. Make sure their personality meshes with yours. There are plenty of agents in this city who have great sales statistics, but the bottom line is you have to like who you work with and they have to like what they’re doing. If they like what they’re doing, that will lead to a win-win situation for everyone involved in the transaction.

If you follow these tips, you’ll pick the right agent and love the choice you made.

If you have any more questions about how to pick the right listing agent or you have any other real estate needs I can help you with, feel free to call or email me. I’d love to hear from you.

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Negotiation Tips for Sellers Part 3: Advanced Tactics

Now that we’ve reached the third installment of our series on negotiation tips for sellers, we’ll be covering the advanced tactics you need to know to successfully list and sell your home. We’ve already covered beginner and intermediate tips (which you can find here and here), and before we get into today’s tips, which will mostly apply to the final stages of the deal, please realize that they aren’t ones you’ll want to rely on all the time.

Ideally, the negotiations in your real estate deal shouldn’t be contentious. Even so, it sometimes isn’t feasible to keep the other party’s feelings in mind when you’re trying to earn the best possible deal. With that in mind, let’s cover our advanced negotiation tips:

1. Raise the price after going under contract. This certainly won’t make you any friends, but it will help you earn a high price.

"Never apologize for seeking the best possible deal."

2. Go deep on contingencies. Doing away with inspection, financing, and even appraisal contingencies is an aggressive, yet powerful, way to strengthen your position in a real estate deal. Money may seem like the most important thing, but if you go deep on contingencies in order to make sure you get the buyer’s deposit, then all the cards are in your hand.

3. Remember that today is different than yesterday. Things change. The majority of advanced negotiation tactics people use are actually based around renegotiation. Don’t be afraid to make changes to what you’re asking based on new developments in the market or economy, and never apologize for seeking the best possible deal.

At the end of the day, all of these tips are most effective if you also have a strong agent by your side. As your broker, I would be happy to act as the “tip of the spear” on your deal.

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Negotiating Tips for Sellers: Part 2

Now that you’ve received a serious offer on your home and you and your potential buyer have started negotiating over its price, here are three next-level tips that will help you secure the best deal possible:

1. Counteroffer with emphasis. There are a few ways to do this, but one way I recommend is lowering your list price. This not only creates a binary dialogue with your potential buyer, but it also creates more competition for them because it shows that you’re willing to make a deal at that threshold.

The only reason not to do this is the fear of missing out. In other words, you think another buyer might swoop in and offer you full price. Here’s the thing, though—if two or three weeks have gone by and that hasn’t happened, it probably never will. If you don’t want to counter by lowering your price, you can also create scarcity by telling the buyer that you’re talking to many other parties.

2. Find out what else is valuable to the buyer (other than price). When you know what’s important to them emotionally, you can build on that and have a more collaborative negotiation. For example, let’s say their monthly mortgage payment is important to them. If you asked for $1 million and they offered $900,000, you can tell them that if they’re willing to come up to $975,000, you’ll pay a certain number of discount points that will lower their monthly payment.

"Negotiation isn’t about giving in; it’s a dynamic process where many other factors besides price are discussed."

3. Remember that they need you too, so don’t give in. Negotiation isn’t about giving in; it’s a dynamic process where many other factors besides price are discussed. Buyers have to come to you. They want to come to you. If they want to buy your home, they understand they you’ll only sell it to them at a certain price and under certain terms. At the end of the day, for most real estate negotiations, the seller has more leverage than the buyer—especially in a market like ours.

Even in a soft market where a buyer might feel like they have tremendous leverage, they’re not going to buy a home just for fun. They’ll buy it because they need a place to live and they can see themselves living in your home—they just don’t want to overspend and feel like they’re losing money.

So counter with emphasis, find out what else is important to the buyer other than price, and remember that they need you and they want you to agree with them. If you do that, you’ll be more successful than if you just negotiate haphazardly.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

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Negotiating Tips for Sellers: Part 1

Welcome to the first episode of my three-part series on negotiating tips for sellers.

I’ve helped negotiate thousands of transactions, and over the last two years, I’ve maintained a track record of earning sellers 100% of their asking price.

If you’re interested in achieving this kind of success for your own deal, simply follow the tips in this series. For this installment, we’ll be covering three beginner-level tips:

1. Create scarcity. Treat your property like the only diamond available in a market full of coal. Make sure buyers know that your home is a fleeting opportunity and that if they don’t make a move, someone else will.

 

"Sellers should pause after they receive an offer so that the buyer becomes more invested in the deal."

 

2. Price compellingly. Home price is not an exact barometer of value. Price is a marketing tool. You can get people to bid over asking price. In fact, between 15% to 25% of properties sell above asking price in New York City during any given month. We don’t live in a bazaar-style economy—many people would prefer to pay above asking price over haggling. You don’t necessarily need to underprice your home to achieve these results, but you do need to price it well.

3. Pause every time you receive an offer. There’s a French child-rearing method called “The Pause,” and this method can also be applied in real estate. Per this method, parents are encouraged not to rush to their child’s side when they hear them begin to cry. Instead, they take their time. This isn’t to say that the child should be completely ignored, just that parents should wait a moment before responding. When applied to real estate, the sellers must do the same. Sellers should pause after they receive an offer so that the buyer becomes more invested in the deal.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

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