Price: The Participation Trophy

What was the offer price? Tell your neighbor or friend that you just accepted an offer on your home. They will first want to know the price. If you received an offer on day one, the next question is, Do you think you priced it too low?  Our neighborhoods are full of armchair real estate experts. Their experience is limited and personal. “When we sold our house….”. They have little to no evidence to form their opinion, but why would that stop anyone? (I rarely pause on topics I know nothing about. )

Whatever the outcome is when you sell your home, the result that matters is the one that matters to you. Other people want to see your trophy price. They want to discuss the errors you made and how much higher the trophy is of another person they know or that of someone who someone knows. You’re not going to impress anyone with the price of your sale. Troubling yourself with the price trophy is a sure way to miss the opportunity of attaining the biggest prize that goes to the wise negotiator. 

The real prize is a price you like and the terms that keep you out of risk and uncertainty.  

There are at least ten pages to an offer to purchase. More likely, that number swells to nearly three times ten. All of the conditions of an offer matter to a home seller’s bottom line, peace of mind, security, and the freedom that comes with assurance. Chasing the high shining price will distract you from the trips and traps at your feet. And when you are distracted, the buyer gains control, and you move forward or not based on the buyer’s will, not your own. 

Price matters. I get that. But the price is the surest way buyers have found to get their offer accepted, eliminate competition, come back later (when time is not on the side of the seller), and renegotiate. The strategy is universal and questionable as ethical or legal. 

Every offer has the information you need to know if you are likely to experience the desired outcome or the disappointment you fear. You can compare offers and see the committed buyer and the one who is committed to gaining an accepted offer with room to negotiate later. Expect your real estate professional to uncover the hidden gem hindrances buried in the purchase agreement. Be wise and get all that matters to you in price and terms. Give what you can to get what you need and lock the other party into a contract that is sure to get to closing. If it’s any help, no one is impressed by that participation trophy price. 

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. Essential real estate services are specified in real estate license law. Those services are worth professional fees. Paying professional fee rates for administrative services is a choice when an alternative exists. We are that alternative. Old business model commission rates are taxing the home equity of American home sellers. Essential Real Estate LLC was created so our clients keep more of their home equity, spend less on broker fees, and receive skilled representation in negotiating purchase agreements.

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