August 25, 2017
How a night’s sleep can be worth thousands
A night’s sleep can be worth thousands to you in a negotiation.
Don’t believe me? Then read on!
Disclaimer: No Jedi mind tricks were performed in the course of this negotiation.
This week I was fortunate enough to work with a young couple that are first time home-buyers. These are always exciting clients to work with as their enthusiasm to buy a home is only tempered by their fear of the unknown. Being “kids” (the fact I see them this way only reinforces the fact I am getting old!) they work at break neck speed. Can it be done in 69 characters or less?? Then let’s do it!
We were able to “win out” in a multiple offer situation (refer to my post, 10 ways to make your offer the winner in a multiple offer scenario, for how we did that) but when we did our inspection the brakes needed to be applied hard. In our hot market, they were OK with paying high average for what was really a nice home but when their inspection report revealed a roof on it’s last legs, some mold in the crawl space, possible termite issues and more, things got a little dicey. Was our deal going to die over $10,000 of legitimate repairs?
In our contract we had 5 days designated as the, “resolution period” – the time between us asking for various repairs and deciding what the seller was willing to do, or not do. In our initial submission we asked for a lot (but not everything) including all the big ticket items that we estimated to add up to $10,000. The seller responded with an offer of not even half of our estimates. Our deal looks set to die… right?
In fact the answer was, “maybe” – in good faith we gathered estimates for the required work. Not to say we, “took our time” doing this but we made good use of this 5 day period. My client was ready to go back with an updated request on day 3 (we received the seller’s response on day 2) but I encouraged them to take all of day 3 and respond on day 4. My words to them were, “fear of loss is a greater motivator than opportunity to gain – let this seller wonder about whether this deal (which was a great deal for them) is going to die”.
Let’s examine that fear for a moment – this seller could walk away from a deal that was great for them in every way (fast closing, no seller concessions and a reasonable repair request), or accept that if they didn’t follow through, the sales price would likely be lower and if these repair requests were legitimate (which they were) the next buyer would ask for them too and even then, they almost certainly wouldn’t be closing in 3 weeks. There are all kinds of phrases we could apply here, fear of the unknown, the bird in the hand…
I believe what’s key here is letting there be a passage of time for reflection. Why do I believe that? Let’s imagine that you have a disagreement with your significant other – I know this is hard to imagine but bear with me ;). You may go to bed disgruntled, angry or annoyed. I bet the next day when you wake up you suddenly feel just a little more amendable to seeing the other side and so does your significant other. But what changed overnight? While you may not have slept well, you certainly didn’t talk/argue/fight/throw dishes at one another, so why do you feel more accepting? I’ll leave that answer to the psychologists but the fact is this does happen.
Now that I know this happens – why not take advantage of this on behalf of my clients? That’s exactly what we did – late on day 4 we went back and asked again for those major items to be repaired – again close to $10,000. We heard back on day 5 with an acceptance.
One night’s sleep was worth over $5,000 to my buyer client – case closed!
Jedi mind tricks aside (Repeat: I will call Simon for all of my real estate needs), the stereotypes of real estate agents are strong – consumers think we simply open doors and put pen to paper. You can see from the above that what’s in my head (is really not all that scary and) helps my clients achieve their goals with less drama and disappointment. Selling real estate is my business and I’m always ready to assist you with your Franklin Real estate needs – buying or selling I have over 17 years experience and a group of clients who consistently feel like I treated them as I would family. I can always be reached at 615 579-7909 via Facebook and of course Email.