Finding good real estate in Los Angeles is simple yet tricky. There are 5 keys to negotiation you must follow in order to get the best deal.
Everyone who dabbles in the housing market wants to feel like they have gained something from the experience, either by making money from a sale or buying great property at the lowest price. Everyone on either side wants to feel like they’ve won out on the negotiation but that can’t be true all the time.
There will be a lot of give and take involved but in the end, it is seldom that one side of the agreement will walk away with everything they’ve asked for. When it comes to real estate negotiations in L.A., everybody has to give.
It doesn’t matter if you’re buying or selling property in West Los Angeles, Beverly Hills, or the South Bay. To be successful in real estate, there are five things to consider before going into negotiations.
Pay close attention to the Los Angeles real estate market
There are two types of markets: the buyer’s market and the seller’s market. From the names, we can deduce that one is in favor of the buyer and the other is in favor of the seller. If you’re selling a house, you’d want to sell when market conditions are on your side. That goes the same for a buyer. If you’re looking to buy a house, you’d want to scour for property at a time that market conditions are in your favor. It doesn’t mean you don’t have to sell when it’s a buyer’s market. If you’re looking to sell your house fast, a buyer’s market will guarantee faster transactions and turnovers.
Who’s got the upper hand?
Personal background and the condition of the market play well into knowing who’s got leverage. If you’ve just filed a chapter 7 bankruptcy and people know about it, you might not sell a house at the price you’d been hoping for. People know you need the money and people know you’d take what you can get. On the other hand, if you’re selling a house with a few properties for sale and a lot of prospective buyers, you have the option to choose and buyers will adjust their prices to accommodate yours.
*Note: If you have any leverage at all, getting access to good real estate in Los Angeles should be a lot easier.
Read the small print
Not all properties are created equal and the asking price isn’t always as it seems. Take for example a couple of side by side identical houses selling for the same price. How will a buyer choose which one to buy? He or she reads the small print. Some sellers will be willing to throw in a few perks like shouldering the cost of repairs or small renovations. Some will be willing to pay for closing fees. When you factor in all these details, the seller that offers all these is actually selling the house at a cheaper price. Good for the buyer, not so much for the seller.
The Inconvenience of Showings
When potential buyers want to view a FSBO house, the seller may not always be available since he or she is responsible for personal concerns first. This might result in the loss of many opportunities to sell. Because of safety and security concerns, FSBO sellers cannot simply leave the house open to buyers if they are not home. So why use a realtor when selling? To ensure that agents can properly handle the business for the seller.
Understanding the Sales Process
Written contracts, negotiations and counterproposals, title companies, home inspections, closings and the whole sales process in general can be very intimidating if a FSBO seller is not familiar with it. When a seller is listed with a realtor, the agent will be there as a source of guidance to ensure that the property is sold at the best price with the least hassle. This is why one should use a realtor when selling.