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Tips For A Successful Negotiation

by Jon Smith, CRB, CRS, GRI

If you are buying a new home or selling the one you have, you want a successful negotiation and sale. The negotiation process can be both complex and confusing for both sides. Each party wants to have a fair transaction and achieve the best deal. Below are some tips to help you get the most from the negotiation transaction.

1. Time the market right. At this time, we are in a "buyers" market, where most sellers are very motivated to sell, this can give a buyer the upper hand. On the other side,  a "sellers" market, or a market where housing supply and demand are roughly equal might give the seller an advantage. If possible, you want to be in the market at a time when it favors your position as a buyer or seller.

2. Pay attention to the details. Buyers and seller pay a lot of attention to the transaction price. It is a good idea to consider other perks or benefits that can add to the overall worth. For example, if you negotiate that the roof be replaced or perhaps having the seller pay some of the closing costs this can sweeten the deal. Don't be stuck with the idea that the purchase prince is the only financial gain to the transaction.

3. Don't forget about financing. Keep in mind that there are several factors that can impact the final sale:

• Has the buyer been pre-qualified or pre-approved by a lender?  Having buyers that are "pre-qualified" or "pre-approved" are more likely to pose less risk than a buyer who has never met with a lender. This also shows the seller that they are serious about the offer and will give the seller more confidence. that they are a qualified buyer.

•If there is a low interest rate, then there will be a larger selection of potential buyers. More buyers equal more potential demand, which is good news for sellers. On the downside, high interest rates will cause buyers to be more selective or cause them to withdrawal from the market all together.

•The traditional 20% downpayment is not standard anymore. If the buyer has good credit, loans with 5 percent down or less are now widely available. Many loans where 100 percent financing are still available, although not as much as a few years back.

Negotiation is an important tool of the real estate transaction. To be a successful home seller or buyer you should have a basic understanding of negotiation methods, knowing the motivation of the other party and adapting to their style.

Cabinet Refacing

by Jon Smith, CRB, CRS, GRI

Whether you are planning to sell your home or want to give your kitchen a fresh look, cabinet refacing can be a less expensive alternative to a complete kitchen remodel.  The kitchen is one of the most important rooms in the house. Outdated cabinets are a big turn off to potential buyers. Replacing cabinets can be quite costly, but refacing them can provide a completely new look.

If your cabinets are still in good condition, refacing with a wood veneer could be the best way to give your kitchen a makeover. Prices vary between different types of veneer so the overall cost will depend on the wood you choose.

Refacing cabinets means adding new doors and the framework that holds them.  Existing structures are left standing, no cabinets are removed and the layout remains the same. A typical refacing job involves replacing the cabinet doors, the drawer fronts, and the hardware. Matching wood, paint, or laminate veneer is used to resurface any exposed cabinet framework.

The cost of a refacing job will depend on the size of the project, the materials, and options, but a typical refacing job generally costs between $1000-$5000 depending on if you plan to do it yourself or hire a contractor.  To determine the projected cost of a refacing project, some companies will give a price per unit. They count each cabinet door, drawer, end panel, and false front as a unit, and add up the kitchen's units for a total unit count. Price per unit can range from as low as $150 to as high as $250, depending on options and material selection. Using a high-end wood door will up the costs, while a less expensive RTF veneer might be a more budget-friendly option.

Homeowner's Crisis Resource Center

by Jon Smith, CRB, CRS, GRI

It is no secret that foreclosures have increased drastically this year as a result of the subprime lending disaster and a lot of people are wondering if they will be next. For many homeowners there may be options, if they know what to look for and where to look. 

In the event that you find yourself struggling to make your mortgage payments, and you fear foreclosure may be in your future, the National Foundation for Credit Counseling (NFCC) has suggested a few possible alternatives. These options to fend off foreclosure include:

  • Repayment Plan
  • Reinstatement
  • Forbearance
  • Loan Modification

The Federal Trade Commission wants people to know that these alternatives may not work for everyone especially if you are already three or four mortgage payments behind.

For more information regarding the above alternatives visit the NFCC's Homeowners Crisis Resource Center website. They can also assist you in locating a certified housing counselor to explore your options in an effort to fend off foreclosure.

Displaying blog entries 1-3 of 3

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Contact Information

Photo of Jon Smith, CRB, CRS, SRES, SFR Real Estate
Jon Smith, CRB, CRS, SRES, SFR
Iowa Realty
3521 Beaver Ave.
Des Moines IA 50310
515-240-2692
Fax: 515-453-6404
 

 

 

Licensed in the State of Iowa