About a month ago, we talked about being in uncharted territory as it relates to the real estate market. Not much has changed for the better in the last month and the statistics for January will confirm that. However, properties are still being listed, and buyers are still out there, and as usual, sellers want top dollar and buyers want bargain basement prices.
One of the tenets of the real estate industry is the ability to negotiate price. According to a survey conducted by Lending Tree in May 2023, 63% of buyers have successfully negotiated a home’s price, 38% negotiate closing costs and 36% negotiate repairs.
The terms of an offer are every bit as important as the price. This includes closing date, mortgage contingencies and furniture. And don’t take the furniture issue lightly, especially for condos in Florida. It’s pretty common to purchase condos, even luxury condos, with the furnishings, including furniture, wall coverings and even other decorative objects.
If you are negotiating a sale including what would be considered personal items, make sure there is a detailed list of what is being conveyed with the property as part of the contract of sale. In your mind, your grandmother’s original Tiffany lamp will, of course, not leave the family, but the buyer assumed otherwise when you negotiated the personal items. And don’t think buyers, especially in the uncharted territory we’re in right now, won’t walk because of this dispute.
Information is powerful, particularly during the negotiating process. The more you know about the buyer and seller the more power you have, for example, buyers who have already sold their home or are in contract to do so, or sellers who have other buyers in the background or have had no showings in months.
By far the most important thing you can do when negotiating is to be respectful of the other parties’ position and don’t make demands. If you’re successfully diplomatic, you can turn down an offer and still leave the door open in a reasonable way by asking for a reframing of the offer.
Time to see what the Manatee County sales statistics look like for the month of January, reported by the Realtor Association of Sarasota and Manatee:
Single-family homes closed 22.1% more properties. The median sale price was $480,000, down 8.6% from January of last year, and the average sale price was $662,504, down 10.0%. Median time to contract was 49 days compared to 35 days last year, and there are 8.5% more listings this month compared to last year. The month’s supply of available properties was 4.6 compared to 3.9 months last year.
Condos closed 7% fewer properties compared to last year. The median selling price was $335,990, down 6.1%, and the average sale price was $408,238, down 7.5%. Median time to contract was 60 days compared to 47 days last year, and new listings are up 2.2%. The month’s supply of available properties was 8 months compared to 5.6 months last year.
The Realtor Association points out three trends: A decrease in median sale prices across all property types, increased time to sell and contract – meaning it is taking longer to sell across all segments – and finally, there is some growth in closed sales, likely leftover transactions from the end of last year.
So much of buying and selling residential properties is emotional, so keeping your emotions in check will serve you better. You could, of course, read “The Art Of the Deal” written by Donald Trump for pointers in negotiating. Just be careful, negotiating is certainly an “art,” so hard and fast rules don’t apply.
