Overpaying should not be your best idea to getting an offer accepted.

Essential real estate service is contract drafting and negotiations. Beware of the professional who suggests paying more than the asking price as a first idea to get an offer accepted.

Ask any real estate agent or attorney to give you two ideas to get your offer accepted in a seller’s market. One idea they will say more often than not is “Offer more than the asking price.” Real estate professionals who believe overpaying is a viable option haven’t done enough thinking to earn trust, and they far outnumber the professionals who don’t use price as a first, second, or third strategy. Note of caution: You can’t tell who the agents are by looking at their age, sex, experience, or company.

I read a post by an agent who equated getting offers accepted to winning athletic competitions. Winning competitive races appeared to be her thing. I understand that competitive drive when it’s my game. Representing people in a real estate transaction is not a sport. When winning is the objective, what might be the costs? Well, for one, the agent who is inspired by competing to win is spending your money and your security to satisfy his or her self interest. I believe a safer attitude is to see the transaction as an opportunity for the client to acquire a home on terms they will be satisfied for long after the day their offer is accepted. For a person to know what the satisfactory terms look like it’s my job to show them the advantages and consequences of different agreement terms. When a person knows what is possible and can see possible outcomes, they make informed commitments. I’m certain that owning a home without overpaying in money or risk rates higher on the list than owning at all costs for most people.

Essential Real Estate is designed to give smart people reliable options to acquire homes without overpaying. Coming out of the recession in 2014 we committed to taking our knowledge of the Offer agreement and other firm’s addenda to the highest level; intending to use that knowledge to give our clients more ideas to give themselves an advantage when the home they want to own is the one more people want to own. There are hundreds of people who own homes they would have lost or paid too much for had we not learned and taught this negotiating strategy.

Anyone can write offers committing you to spend more than the asking price. That’s simple. It may be effective if by effective you mean getting your offer accepted and the agent paid. Our clients do not settle for just an accepted offer. They don’t expect a steal; they expect smart ideas to acquire a home on reasonable terms with the risk they can tolerate.

Essential real estate service is contract drafting and negotiating. It’s not easy, but it’s worth it when the cost is your money and your security. Before committing to working with us, or any professional, ask to hear ideas to help you achieve your goal and not lose your shirt in the process.

Author: Tom Meyer, Owner-Broker, Essential Real Estate, LLC Madison, WI

The real estate transaction, disclosure, and confidentiality are the business of a Wisconsin licensee. It's in the transaction where the skill of the licensee, and their commitment to the law where the public is protected or placed at risk. What you see REALTORS do to brand themselves and their firms, promote their service, advertise, and process paper do not require a license. I believe negotiations to create and honor a real estate purchase agreement is where the agent has the greatest value in a transaction. Paying professional fee rates for the administrative services is a choice consumers deserve. Old business model driven commission rates are taxing the home equity of American home sellers. Essential Real Estate was created to put more money in the hands of the consumer by eliminating expenses for the firm and charging a fair price for the real real estate service.

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