Handling Deal Breakers

Deal breakers come in all shapes and sizes. In her latest article for Inman News, Bernice Ross offers suggestions on how to handle the usual suspects who may blow up some of your real estate deals.

1. Your client’s business manager or CPA
   1. Remember that business managers and CPAs are, above all else, numbers people. They want data.
   2. The solution(s)…give them data from…
      1. Your own comparative market analysis PLUS valuations from Realtor.com, Zillow, Homesnap, your local MLS…all of them are free and won’t cost you or your clients a thing.
      2. NARRPR property reports

• Days ion the market absorption rates
  1. If on the market for 5 months or less, the market is considered a seller’s market with increasing prices.
  2. If on the market for 6-7 months, the market is considered to be flat or transitioning.
  3. If on the market for 8 months or more, the market is considered a buyer’s market with decreasing home prices.

1. Weiss Analytics – allows the business manager or CPA to add their comparable sale prices to its algorithm.

2. Your client’s attorney
   1. Remember that attorney’s do NOT want to be held liable for their advice. They want “cover” or at least transaction documents that will provide them with that cover. Your job is to be conduit of information.
   2. Provide attorneys with key transaction documents from the get-go such as purchase agreements, agency disclosures, mandatory inspection disclosures, other documents specific to state/local regulations.
   3. If the client’s local real estate market generates multiple offers, explain to the attorney that “winning” multiple offers often are more than the asking price on the listing.
   4. For legal issues that may come up, contact the legal hotline for your state’s Realtor association; for title issues, contact your preferred title company and request ask that its attorney or advisory officer speak directly with your client’s attorney,
3. Your client’s parents
   1. Again, your role’/job is to be a conduit for information.
   2. It’s up to your client and their parent(s) to work out a decision.
   3. Always be in alignment with your client, the “child,” so both the parent and the client know you have the best interests of your client (their child) at heart.
4. Your client’s inspector
   1. It’s likely that you as your client’s agent have referred one or two inspectors to them to do the job. Even still, it’s important for your client to know the difference between needed and preventative repairs.
   2. Let your client know that too many demands on the seller based upon the inspection report can cost the deal.
   3. Let you client know the benefits of taking credits for repairs.
   4. If the value of the house warrants it, it may make sense for the seller to purchase a one-year home warranty on behalf of the buyers.
5. The seller’s agent
   1. Some agents see themselves as “White Knight” agents, according to Ross. These are agents who want to make all the decisions rather than granting the “real” deciders the right to decide. Since you are negotiating with this agent on behalf of your client, make sure you are the agent who gets the deal done with finesse.
   2. Calmness prevails, not one-up-man-ship.