Home > Buying a home, Selling a home > What if the Other Guy Won’t Play?

What if the Other Guy Won’t Play?

I’ve had several comments and questions regarding the subject of a previous posting on Fair Negotiation. The common question is this – What if the other guy doesn’t want to play fair?

It’s a great point and the answer is very straightforward. Whether you are the buyer or the seller, if the other party in the negotiation is “playing hard ball” with a price that is significantly outside the range of the fair market value of the house, then you probably aren’t going to come to terms with that party.

Although it might be emotionally discouraging to begin a negotiation and then have to walk away from it, the bottom line is that you aren’t really losing anything. The value of the house you want to sell or buy, is determined by the market.

Sellers who stand firm on an unreasonable price are not likely to sell their house until they adjust their position. As I’ve written before, there are four things that are irrelevant in pricing a house for sale. “What you paid; What you owe; What you want; and what you need.” All of these things are important considerations in determining whether or not to sell a house but they have nothing to do with the value.

It’s the same with buyers. What a buyer can afford has nothing to do with the value of a house he wants to buy. How large of a down payment, the amount of his pre-approval and how much his current home will sell for all have nothing to do with the value of the house he is trying to buy.

So, as I wrote in the last report, work with your Realtor to come up with a range that represents the fair market value of the house you are trying to buy or sell. If the other party and his Realtor do the same, the negotiation should be a simple process.

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