buyer

3 Traits Of An Effective Negotiator

Mario AvalosLeave a comment

Working in the real estate field, I have come to find out that everyone and their mom knows how to negotiate. And it’s quite amazing how far from the truth most people are in knowing how to effectively handle the back and forth with the other party.

Now. Am I an expert negotiator. Maybe…maybe not. But what I do know is that I am very good at communicating with other people that have at a minimum…enough motivation to get the deal done. With the latter in mind, here are three traits I am always conscious of when negotiating.

  1. Be quite. More often than what you may think, the other party will propose a reasonable start to the negotiation process. And even if they start with a low ball offer, so what. Be quite and listen. You cannot control what other people will offer you. But what you absolutely have control over is your response. And if your response includes the “giving of full attention” for what the other person has to say, the end result will be a reach of agreement or a smooth “end of talks”. In the worst case scenario, you leave an amicable door open just in case the other party reconsiders a new offer.
  2. Get out of the way. I am a firm believer that the biggest obstacles between a motivated seller and a motivated buyer are the middle people with a lack of control of emotions. So as long the back and forth is all within win-win grounds, why throw a curb ball? Now. If the balance (negotiation) is unfairly tilting one way, then yes. Control your emotions and get in the way.
  3. Given what you asked? Take it and run. I have been involved is so many deals where we have offered everything the other party wanted with a cherry on top…and bang! We still hit a wall.  Why. Because the grass is always greener? That’s just dumb. Not taking what you want tells me you are not motivated. And what do non-motivated sellers attract? Low ball, non-motivated or see-what-sticks-on-the-wall type of buyers.

More tips on negotiating?

Say you are talking to the buyer that is making you an offer. After they are done talking, repeat what they said is one or two sentences. This ensures them that you listened and understood what they said. That you are with them on the same communication page. And this helps them get on “your side”. You’ll be surprised the lengths the other party will compromise simply because you acknowledged them.

What $300,000 Gets You

Mario AvalosLeave a comment

15230 sw 100 ave kendall fl 33157Don’t worry. You have options.

So today I had a good friend call me to help him, his wife and two kids find a single family home for under $300,000. So here is the lowdown based on my search.

West of the Florida Turnpike, and from 8th street all the way to 120th street, you’ll easily get a home with a small or medium size yard. One car garage (maybe two) and most likely no association. And living space hovering 2,000 square feet. And possibly with a pool.

Now..say in between the Florida Turnpike and Palmetto Bay? Bells and whistles begin to get chopped. Now you are looking at a small lot, or a medium sized home under 2,000 square feet under AC. And most likely the home will be in need of a considerable repairs or upgrades (five years of roof left, replacement of AC, kitchen in need of gutting, etc).

And most likely you will only be able to buy it cash of via a conventional loan. No FHA. And its not that the homes don’t qualify for FHA. Its the competition (other buyers). They are strong and willing to put down the necessary “mula” to get the deal done…not just 3.5% down payment.

East of Palmetto Bay? Good luck. Unless you have $300,000 in cash. Only then will your be able to buy a property in need of major repairs…to the point where the home is not finance-able. Or you can always settle for land 😦

Times are changing and changing quickly. Prices are moving up and not just in our neck of the woods, but also throughout the United States. And although rumors are that prices will flatten out in 2014…they are only a rumors.

Killer Mindset For Today’s Market

Mario AvalosLeave a comment

White LionBuyer mindset for today’s market. What’s it like? How must you think to score the right deal given an opportunity?

The only way I can describe what you must be: patiently aggressive. Now…what the heck is that?

Today’s market consists of a historic low inventory. Add to that the portion that is made up of foreclosures and short sales. These type of properties are usually priced from fair market value up to 10% below it. This combination has created an outrageous demand for good homes in good areas.

Patiently aggressive buyers are like tigers hunting for deer after months of hunger. They wait for the right deal to cross their way because they know its coming. And once it comes, they don’t think. They act. They don’t plan. They execute. They don’t compare, analyze or start pondering if there is a better deal out there.

And in today’s market, for you the buyer, this is the right mindset you must have in order to score on a great deal. Ever heard of the saying, ” the deal of the century comes once a week”. Well, in this market, its coming once a month. So you must be ready.

Off-course, nothing is ever done without the right preparation. And where do you start? With a real estate agent?

Before stepping onto your car to view a single property, a real estate agent must explain to you three factors and not just simply throw you into a safari with a blessing. The three factors are:

  1. Expectations of how the market is, or how are other buyers’ conduct in buying properties so that you know how to compete in order to score a deal. Yes…as much as you may not think…this is competition. You are competing with other buyers.
  2. The process of making an offer within 24 hours from viewing the property.
  3. What are all your “ways out” of a contract after you submit an offer to a seller.

In conclusion, the above explanation is for buyers that claim they want a “hot deal”. And most buyers do. The problem is that lost of buyers and or their real estate agents are not aggressive by nature.

How To Loose Your Escrow 101

Mario AvalosLeave a comment

It’s so much simpler than you think! Scary isn’t it?

I’ll write this post from a buyer’s perspective. To be more precise, am writing this post due to a recent closing where I represented the buyer for a home located at Encore / Panache, a community in West Kendall. And NO…my buyer did not loose his deposit. We closed…yeeeah!

So get ready. Any sellers reading this post? Smile…heck…you’re the one that stands to get the money 🙂

The possibility of loosing your good faith deposit when buying a home is tied up to several financing contingencies. But none of them are as important as the letter of commitment contingency (LOC). And the date when you are to provide this LOC to the seller is determined during contract negotiations.

This date should be as important as your wedding anniversary (or divorced date) or your child’s birth. YES…it’s that important considering deposits range in the thousands of dollars.

The obvious reason is because you forgot the date or didn’t even know you had to provide this letter.

WRONG! There is only ONE way to loose your deposit. And the answer is: your real estate agent and mortgage broker f##ked up. Pardon my language, but am very “passionate” about this type of negligence.

Simply put. During contract negotiations…it is when this LOC date is established. Who writes the contract? Your real estate agent. Once you have an executed contract, it gets delivered to your lender to start financing process. Who’s in between you and your lender? The mortgage broker.

So what’s the moral of the story here? Always inquire about the safety of your deposit. And keep asking verbally and in writing until the deal closes. During the purchase process, there are too many balls you have to juggle to be on top of everything. And you should not have to.