When it comes to evaluating offers, what’s good for the goose may not necessarily be good for the gander. One seller may be overjoyed with their offer, while another may be disappointed.
That means, in order to figure out whether an offer you receive is “good” —and whether you should negotiate — you’ll need to do two things:
So what do you, the seller, need to know before negotiate with a home buyer? We’ve got answers to some commonly asked questions.
When you receive an offer, you can accept it as-is, reject it outright, or make a counteroffer — a move that opens negotiations with the buyer.
Unless you’re being offered an amount equal to or above the full listing price, many buyers expect you to make a counteroffer — which is why a lot of people make an initial offer that's lower than the asking price. And why a lot of buyers make an initial offer that’s lower than what they’re ultimately willing to pay.
Before you start negotiating, you’ll want to know what you’re hoping get from the buyer. Obviously, money is important. But it’s not everything. There are other factors to consider when crafting a counteroffer, particularly timing.
So, sit down with your agent and have an open discussion about your goals. Do you want more money? A faster closing period? Fewer contingencies? When you review these types of questions with your agent before you respond to an offer, and have a crystal-clear sense of your priorities, the negotiation process will go a lot more smoothly.
Ready to play hardball? Hold up, slugger. First, you have to consider your position on the field. How much negotiating power do you really have? The answer depends on several factors.
A lot depends on your local market conditions. If you’re in a buyer’s market — meaning the supply of homes exceeds demand from buyers — you may have to make some concessions to secure an offer. If you’re in a sellers’ market — and homes are flying off the proverbial shelves, selling at or above list prices — you may be able to persuade a buyer to offer more money for the house, for instance, or to let go of some contingencies (aka provisions that must be met for the transaction to go through).
Your timetable will also impact whether you have the upper hand. If you’re not in a rush to sell, you may be free to negotiate more aggressively. If you’re in a time crunch because, say, you already bought your next home and don’t want to pay two mortgages at one time, your hands may be tied.
In any case: Confer with your agent. They can help you objectively assess your position and determine the right negotiating strategy.
Don’t worry. It may only feel like forever.
When you make a counteroffer, the buyer can either accept the new offer, reject it, or make a new counteroffer. (Sound familiar?)
This volley can go back and forth, and potentially end in a stalemate — unless you or the buyer put an expiration date on your counteroffer. This can be a smart strategy for you as a seller because it puts pressure on the buyer to make a decision. It also gives you the ability to move on to the next bidder if the buyer tries to stall (chances are, they’ll do this so they can look at more homes without giving yours up).
It’s not unusual for the first offer to be best one — depending on market conditions, of course. And often, sellers see the most interest from buyers in the first month of the home being on the market.
If you get a good offer right off the bat, start negotiating. You may get a better offer. On the other hand, you may not.
The actual negotiation is the job of your agent, who will be experienced in real estate deal-making. That being said, you should still strategize with your agent before they make that counteroffer for you. Here are five ways you can nab a better deal:
If you have more than one offer on the table, you might be tempted to pit buyers against each other and watch them duke it out for your home. (Anyone who’s seen The Bachelor knows that kind of drama can be fun, after all.) But think twice before you do: This strategy can backfire. Buyers may walk away in frustration.
Rather than starting a bidding war, ask all buyers to come back with their “best and final” offer by a certain deadline (say, within the next 24 hours), and then choose the one that’s right for you.
At the end of the day, receiving an offer is a good thing! It means you’re getting closer to a sale. But remember, you may have to give a little in the negotiations, too. Keep your head on your shoulders — don’t make an emotional decision — and you’ll be all the more likely to get what you want.
Below is an update regarding the City of Santa Fe's proposed changes to the Short Term Rental Ordinance. If you have questions please contact us and we would be happy to weed through all this with you.
At the City of Santa Fe’s Planning Commission meeting held on Thursday – June 18, 2020, the Planning Commission members postponed action on the proposed Short Term Rental law changes. The Planning Commission agreed to take up the proposed changes at its July 16, 2020 meeting and will accept written comments through July 9, 2020. Additionally, the Planning Commission agreed that there will be no public hearing at the July meeting to allow members to fully debate, amend and craft a final recommendation to the City Council regarding these changes. Based on the advice from the Planning Commission’s attorney, Sally A. Paez, the ordinance changes will continue to be reviewed by city committees as the patrons of the legislation are committed to advancing the proposed changes to the City Council for its consideration by early August.
At the June 18th Planning Commission meeting, members offered:
Approximately, 30 individuals provided testimony at the City Planning Commission’s Zoom meeting with 12 individuals generally supporting the proposed changes and 17 individuals raising concerns or opposing the changes. SFAR President, Susan Orth, provided public testimony urging the City of Santa Fe’s Planning Commission to postpone action and seek clarification on the proposed changes.
The City’s Quality of Life Committee will hear the proposed changes to the Short Term Rental ordinance on July 1, 2020. It is unclear whether public comment will be permitted. SFAR will provide meeting details as they are publicly announced.
The City of Santa Fe is proposed changes to its Short Term Rental laws; specifically:
The City of Santa Fe is proposing Changes to the Short Term Rental Laws. These could affect your property rights. We suggest reviewing the proposal and if you have any questions please feel free to contact one of the talented Realtors at Leyba Real Estate LLC. www.LeybaRealEstate.com
Proposed Changes to City Short Term Rental Laws
Total All Types
Septic Systems in New Mexico are required to be tested prior to the property transferring ownership. The filing fees and re-permitting fees will change as of July 1, 2020. Below is a notice from the New Mexico Environment Department. If you have any questions regarding how this would affect the potential sale of your home please contact any of the experienced Realtors at Leyba Real Estate LLC. www.LeybaRealEstate.com
Changes to New Mexico Administrative Code 20.7.11 Liquid Waste Treatment and Disposal Fees will become effective July 1, 2020.
The new report filing fee will be fifty dollars. An invoice for $50 will be attached to all property transfer evaluation reports filed with any of the field offices. The owner of the property is responsible for the fee. The owner or their authorized representative may pay the fee via check made payable to the Environmental Health Fund.
Payment may be made at the time of submission or within 30 days. Any outstanding invoices will become the responsibility of future property owners.
The department has plans to allow for credit card and online payments in the near future.
Additional changes include a fee of $250 for the department to conduct an un-permitted system inspection. Again, this is a new fee.
A fee schedule is below for your information.
You may email or call your local field office if you have any questions.
The department will develop an online video explaining the changes in the near future.
We will send out the link when that occurs.
20.7.11 NMAC LIQUID WASTE TREATMENT AND DISPOSAL FEES
Conventional system, register, construct, or modify design flow up to 1,000 gpd
Conventional system, register, construct, or modify design flow 1,001 gpd up to 2,000 gpd is
Conventional system, register, construct, or modify design flow 2,001 gpd up to 5,000 gpd
Alternative system or advanced treatment register, construct or modify design flow. up to 1,000 gpd
Alternative system or advanced treatment register, construct or modify design flow.1,001 gpd up to 2,000 gpd
Alternative system or advanced treatment register, construct or modify design flow.2,001 gpd up to 5,000 gpd
Annual operating permit renewal for an alternative system or advanced treatment system
Annual operating permit renewal for a holding tank system or, a split flow system with a holding tank, excluding alternative systems and advanced treatment systems
Homeowner Qualification Certificate
Third-party Evaluator Qualification Certificate
Maintenance service provider Qualification Certificate
Septage Pumper Qualification Certificate
Installer Specialist Qualification Certificate
Installer Specialist Renewal Qualification Certificate
Septage Pumping Truck Annual Registration Fee:
Property Transfer Report Filing Fee:
Septic Tank Manufacturer Certification Fee:
Un-permitted System Inspection Fee:
Variance, Application for, small system
Variance Application for, large system
Table Prepared 4/9/20
Mortgage financing giants Fannie Mae and Freddie Mac announced that homeowners in forbearance can request payment deferrals and tack any missed payments on to the end of their loan term, without penalty or added interest.
Under forbearance, homeowners are still required to repay any missed payments. But the government-sponsored enterprises made clear in an announcement Wednesday that borrowers do not have to repay them all at once.
Freddie Mac stated that borrowers taking one of its mortgage deferral solutions will be able to eventually resume their monthly mortgage payment to its pre–COVID-19 amount by adding up to 12 months of missed payments—including escrow advances—to the end of the mortgage term. Borrowers will not accrue any extra interest or late fees. Its solution is effective July 1, the date when mortgage servicers will begin to evaluate homeowners with resolved COVID-19–related hardships for eligibility.
“Our main focus continues to be finding new and innovative ways to help borrowers and their families during this pandemic,” says Donna Corley, executive vice president and head of Freddie Mac’s single-family business. “Our payment deferral solution adds another tool to our toolbox to help homeowners pick up where they left off once they’ve recovered from a short-term financial hardship.”
Fannie Mae and Freddie Mac are allowing homeowners affected financially by the COVID-19 pandemic to pause their mortgage payments for up to a full year through forbearance. By the start of May, nearly 4 million homeowners had taken advantage of the government’s or a bank's mortgage forbearance program, according to data from Black Knight, a mortgage analytics firm.
Loan servicers are to reach out about 30 days before a borrower’s initial forbearance plan is to end to determine what type of repayment plan is needed.
Fannie Mae says that homeowners will have several options to pay back missed payments, including rolling the payments to the end of their mortgage as well as repaying in full—if they wish to—or setting up a repayment plan to gradually catch up.
Fannie and Freddie also said loan modifications could be possible depending on the borrower’s situation.
The National Association of REALTORS® applauded the Federal Housing Finance Agency's move to deliver greater certainty to homeowners who need to take forbearance. This move offers "solutions and some much-needed certainty to the millions of U.S. families facing unemployment and unsure how they will cover next month’s bills," says Vince Malta, NAR's president. "This flexibility will be invaluable for American consumers as we begin to emerge from this crisis and restart our economy."
To determine whether a loan is owned by one of the GSEs, visit Fannie’s lookup tool or Freddie Mac’s lookup tool.