NEGOTIATIONS START NOW

Not surprising, there is a lot of thought that goes into buying a property and as soon as you get the tickle in your brain that you might want to consider purchasing a home, buyers need to shift into the negotiation mode … before walking out your front door or picking up your phone to text your best friend about this new revelation you’ve made.

First of all, Oahu is a small island with a lot of buyers that may be competing for the same inventory.  When you have less than 5 properties any given day that fit your budget and needs, the last thing you want to do is bring any of those properties to the attention of a potential competitor.  Human nature makes us want to make small talk or “talk story” leading to casual comments about anything.  That casual comment can be the start of a telephone chain of communication.  One of my clients lost a bid against 12 other buyers.  He went to Los Angeles for a convention and ended up chatting with an unknown colleague who happened to bid on the same property back on the east coast.  It’s a small world and small talk anywhere except in your own car or house with the windows closed and only with your closest confidants could potentially lead to the loss of your dream house … a little exaggeration but why chance it?

A totally different scenario is when you visit an open house. Innocent enough, you walk in, make small talk with the realtor at the property.  Technically,  any individual realtor that works at the brokerage firm with the sign in the lawn,  represents the Seller(s) and that realtor is obligated to share any information with the Seller(s) that you shared with them or that they noticed about you.  For example, if you make comments between each other that the kitchen was outdated and the rugs need to be ripped out and the agent overhears you and then you decide to make an offer, either with that agent or with your agent, that agent that overheard you is supposed to share with the Seller(s) that you were the visitor to the open house that mentioned you thought the kitchen was too small and the rugs had to be replaced.

The Seller(s) are very fond of their kitchen as they raised their 5 kids in it and take offense that you think it was too small for you and not good enough the way it is.  No matter how hard the agent tries to tell the Seller(s) that it is nothing personal, there is always a chance the Seller(s) will choose to take it personal making it more difficult for the Seller(s) to accept your offer. Buying a house in a seller’s market goes without saying, COMPETITIVE.  Whether you’re a competitive person or not, the reality is keep your cards close to your chest and lips tight as Loose Lips Sink Ships and in this case Loose Lips Lose Houses or money … either way the less said, the better except with your Buyer’s Agent and your lender.  They work for you!

---