Are You An Effective Negotiator?

Everybody has his or her own interpretation of what it means to be an effective negotiator. Some believe that they need to possess a killer instinct, a win-lose attitude, or place what they perceive as their clients best interest in front of reality. While negotiating, the true person comes out or the person you think you need to be. Viewing a negotiation as a win-lose game creates a competitive atmospherethat is based on our behavior rather then focusing on the goal. All parties involved should benefit from a successful negotiation. 

Some keys to a successful negotiation are understanding the importance of effective communication, focusing on the goal, and not letting emotions or personalities cloud the process. When a buyer or seller client hires us to work on their behalf the very first meeting tends to be a negotiation until we are actually hired. Once they sign an agreement our role shifts from participant to advisor.

The initial consultation we have with a prospective client will also help determine what type of negotiating partner they will be when it comes time to make or receive an offer to purchase. Listening, clarifying, setting expectations, and a full explanation of the home buying or selling process, will give you all the answers you need in order to help that client.

By taking the time to discuss the above from the beginning, you are preparing the client for what could come. We want to keep the playing field as calm as possible and by adhering to the above; the client has had time to absorb the many possible scenarios in advance of any real-life action. The beginning of the negotiation process is NOT the time to prep a client. 

As real estate agents we are acting as client advocates and part of our duty is to educate and guide our clients. We help set the tone for the negotiation with the buyer, seller, and the other real estate agent. It is absolutely imperative that we remain professional and calm otherwise we run the risk of tainting the process. Once one party gets a bad taste in their mouth about the other party it can be hard to reverse.

The other side will also most likely remember your initial interaction down the road when you ask for repairs, changes, or flexibility in a term.

I believe that many things in life are preventable. Choosing to properly inform clients from the start will yield far greater results then just closing a real estate transaction. 

The Westchester County Real Estate Market Needs Your Help!

Westchester County Real Estate Market Report 2015

The spring and summer Westchester County real estate market has come to a close and fall is moving quickly.  Despite the current spring-like temperatures we are still seeing a shortage of Westchester single family home and condos.  Tight inventory levels have been a hurdle we all have had to face in the past two years, hence the reason for numerous multiple bid situations.  I avoid using "bidding war" because it carries such a negative tone.

The Westchester County real estate market has made an obvious shift from a buyers market to a sellers market and it's not going to change anytime soon.

The winter is fast approaching and typically a time where decisions are made about buying and/or selling a home.  I often tell clients that the holidays are a time for families to get together and make these decisions.  People don't just wake up one day and decide that today is the day they are going to buy or sell a home in Westchester County.  These decisions are long in the making and once the holiday season comes to an end those decisions are implemented.

Home buyers and sellers always hear "now is a great time to buy or sell"  at times it is and others may not be.  The Westchester County real estate market will never come to a screeching halt.  Many sellers question whether listing a home in Westchester County during the winter months is a good idea.

Everyone has their own thoughts and scenarios that play out inside the neighborhood between their ears.  Take it from a full-time real estate agent that has worked in the field for the past ten years, winter is a great time to list!

The reasons are clear-cut and fact based;  Inventory is still tight as we mentioned earlier in the post.  Many of the Westchester County buyers that lost a home to another buyer still need one.  Some of these homes had as many as 8 (sometimes more) offers.  What do you think the remaining buyers will do?  Keep looking!  Occasionally we'll lose a buyer to renting if they are in a real time crunch.

Redfin conducted a study based on information between 2010-2014 that determined February is the best month to list.  An average of 66% of homes listed sold within 90 days.  I agree February is a great month to list but personally feel the second half off January is equally as good.

In Westchester County we tend to see inventory pick up greatly during this time along with the amount of competing buyers. Once the spring market is in full swing the competition will be far greater, good for sellers and not so good for buyers.   Read how to win a bidding war

Buyers these days are very savvy and have been keeping a close eye on the market.  Once that property they want enters the market they will jump on it, I've experienced it in the summer market.   Mortgage rates are still hovering around 4% and will remain that will for the foreseeable future.

Sales are up and there have already been 217 single family homes placed under contract from November 1-12, 2015.  During the third quarter of 2015 there was a 10.3% increase in Westchester County single family home sales compared to 8.4% in the second quarter.  The total home sales in the county for the third quarter were up 294 from last year to 3,157.  The median sales price in the 3rd quarter was $676,500 down $6,000 from this time last year.

If you would like real estate statistics for your town please feel free to contact me directly on 914.406.9023, email - chris@LegendsRealtyGroup.net or visit my website www.WestchetserCountyRealEstateMarket.com

This Is Not Your Average Open House...

The debate on whether open houses are effective or net seems to never end.  Quite often I hear valid reasons why they are or are not worth the time.  Here is my perspective...I hold open houses for all of my properties, period.  I have been hired  by a seller to sell their home.  That means I will market the property in every way possible to bring a ready, willing, and able buyer through the door.  Marketing a property is like a puzzle, all the pieces and avenues come together to complete the sale.  

Many say that open house are a way for agents to pick up buyers or a chance for nosey neighbors to come through and snoop.  So what if an agent picks up a buyer at an open house?  The buyer willingly showed up to the open house and was obviously impressed by the agent.  In NY, we are technically supposed to ask the sellers permission to work with the buyer since they came to the open house, did you know that?  Meeting a buyer at an open house doesn't necessarily mean they are going to work with you, YOU have to be able to convert them.  

As for nosey neighbors, I don't mind if they come through because you never know who they know looking to move into the neighborhood.  I sold a home to a neighbor's mother who had been looking in the neighborhood for the right property to come on the market, it was mine.  

I try to be as creative with my open houses and never, ever, hire clowns or give away TV's.  I don't want the focus to be taken away from the home, that is why we are all here.  If they have to be enticed by fluff and carnies, they aren't real buyers.  That's just me, others may have success with it but I stick to marketing and great sign placement.

As agents we should travel down every avenue of marketing because WE never know when or how we will meet that ONE buyer for a property, all we need is one.  

Christopher Pagli - www.WestchesterCountyRealEstateMarket.com

Accredited Buyer Representative

Real Estate Associate Broker

William Raveis Legends Realty Group

914.406.9023

Chris@LegendsRealtyGroup.net

Dear Home Seller, Please Demand The Best Photos Of Your Listing!

Too often I see lousy listing photos taken by either an agent or the seller. I've even considered making a coffee table flip book for terrible home photos, we laugh but it's really not funny. As the seller client, you should demand to approve the photos before they are officially listed online.  The main idea here is to capture as much of a room as possible and showcase the functionality of the home, that means including some of the ceiling and floor, this helps to show depth in a room.  Toilet, shower curtain, and bed close-ups don't do a room justice,  If you aren't using a wide angle lens then don't include that photo.  If you have captured the true essence of the home in the other photos it's ok to leave something to the imagination.  I'm not a big fan of wide angle lenses because they make the room look like it's being viewed through a peep hole.  Many times I've taken a buyer to a home and they say "the pictures online made the home look much bigger then it is".  I prefer to picture the home exactly as it is so buyers feel the pictures are truly representative of what they are seeing in person.   

Take a minute to look through the camera lens before taking the photo, and remove anything that doesn't need to be in the photo, such as that bottle of glass cleaner on the coffee table or breakfast dishes in the sink, or dirty laundry on the bed.

The last thing I'd like to discuss is dark photos, my number one pet peeve.  I look at some photos and cannot believe that the agent looked through and felt they were ok to include online.  There are so many programs you can use to brighten up and enhance photos.  Two things to keep in mind, photos are representative of our efforts and home buyers DO judge by what they see online.


Christopher Pagli - www.WestchesterCountyRealEstateMarket.com
Real Estate Associate Broker
Accredited Buyer Representative
William Raveis Legends Realty Group
914.332.6300 office
914.406.9023 cell

Chris@LegendsRealtyGroup.net
mrwestchester.blogspot.com

The Strategy Behind Making An Offer On A Home

As easy as making an offer on a home seems it can be very dificult for some to do.  As an agent I get asked all the time "what do you think we should offer"?  I technically cannot tell you what to offer just provide you with market data and support in order for you to make an informed and comfortable decision.  

My approach is simple, we need to make an educated offer.  An educated offer is one where we have analyzed the most recent, comparable sales data to the subject home.  It is very important to compare Colonial homes with Colonials because you won't compare them to a ranch.  If a ranch is the only comp then you will have to adjust a bit because Colonials typically bring a higher dollar due to popularity.  Another very important factor is how close to the subject home the comps are, sometimes you have to extend beyond the 1/2-1 mile radius.

This is the same data a bank appraiser is going to use and hopefully the listing agent when determining a price for the home.  The reason we use sold data is the price a home actually sells for determines value.  In regards to active listings, the seller can ask anything they want for a home but if there isn't a buyer that's willing to pay that price then guess what, your home isn't worth that price. The active lisitngs will just be your competition on the market if you are a seller.  In that case you will want to position yourself as the best value amongst the competing homes.

We take the sold comps and couple them with your level of interest in  the home, supply levels, and what you truly feel it's worth to YOU.  With that we formulate our offer.  When presented we can let the listing agent know how we came to our number and that will give us ground to stand on.  Sometimes this means paying the asking price and above.  In a market like we have in Westchester at the moment, supply levels are low, competition is swift, and homes are disappearing quick.  So many Westchester County home buyers are willing to pay above ask in order to get that home they love.  

Lastly, a good offer isn't always about the price, the terms can make or a break a deal as well.  As a Westchester County Buyers Agent I Always advise the buyer make an offer contingent upon a satisfactory home inspection and their ability to obtain a mortgage.  In some cases buyers do waive one if not both of these in order to "sweeten" the offer a bit.  You have to feel comfortable doing this and if you aren't then that is how it will be.  Having nothing to sell, the ability to break a lease at any time, and being flexible with the seller on closing timeframe can also help you.  

I love giving my Westchester County buyer clients the knowledge and tools they need to make a comfortable decision.  After all, I want you to love the home you purchase!

Please feel free to contact me with any questions.

Westchester County Real Estate Agent, Westchester County Buyers Agent, 

Christopher Pagli - www.WestchesterCountyRealEstateMarket.com

Accredited Buyer Representative/Real Estate Associate Broker

William Raveis Legends Realty Group

914.406.9023 office
914.406.9023 cell

chris@legendsrealtygroup.net

mrwestchester.blogspot.com

Should The Buyer Of A Home Work Directly With The Sellers Agent?

I get asked this very question all of the time.  My answer is simple; the listing agent represents the sellers best interest, ALWAYS.  Anything you say can and will be used against you in a negotiation.  Many seem to think that if they contact the listing agent they will get inside info and a better deal.  Although some may go against their fiduciary duty to the seller because they want to put together a deal, this is not the proper way.  We have to relay any information about the opposing party that will benefit or help the client make a sound, informed decision. 

Keep in mind, there is no way to properly represent two opposing parties in a transaction and honestly have both parties best interest in mind.  Each party deserves their own representation, especially when negotiating and specific issues arise. 

Anytime we meet a customer for the first time we, by law, have to discuss the different types of representation.  In NY we are all sellers’ agents until we specify otherwise in writing.  The NY State disclosure form describes the different types of representation and once both parties decide how that client will be represented they execute the form.  Once the form is executed the agent has a fiduciary duty to that customer who is now a client.  This form is not a contract; there is a separate contract that can be used if mutually agreed upon. 

It is important to know how you are being represented and who is looking out for your best interest.  Make sure you have a clear understanding from your agent and don't be afraid to ask questions. 

Christopher Pagli -www.WestchesterCountyRealEstateMarket.com
Accredited Buyer Representative
License Associate Broker
William Raveis Legends Realty Group

914.406.9023 cell

914.332.6300 office