how to keep FSBO negotiations friendly?
We’re negotiating with our neighbor to buy her 1BR (next to ours). She floated an asking price; we countered by offering her asking price minus the average 6% she would give to a broker. She has now lowered her initial asking price by only $4K. We think she’d never get that amount if it was…
We’re negotiating with our neighbor to buy her 1BR (next to ours). She floated an asking price; we countered by offering her asking price minus the average 6% she would give to a broker. She has now lowered her initial asking price by only $4K. We think she’d never get that amount if it was placed on the market. How to proceed?
thanks, all — appreciate the advice.
I bought a building from a friend. She listed it with 2 realtors without an exclusive, i.e she was free to sell it on her own. She received a few offers and I gave her approximately 3% less than her best offer. Both of us walked away feeling it was a fair deal. In your case, neighbor can list it with agent but advise them that they already have an offer and they can see if your offer is in the range. You of course risk losing out if they get more than their current ask price.
Make sure that it really is cheaper to expand than to move, if you are planning on combining, and not just buying for a space to rent out, or to use as an office, uncombined with your current space.
Sometimes when you combine apartments, you end up with a much higher maintenance than moving to a similarly sized larger unit. (This is common in coops – not sure if it works that way in condos or not.) Even if you don’t mind paying the higher monthly fee, it can be a big factor when you go to sell. Could still be economical if your combined purchase prices are cheap – but you’ll get a lower price when you sell with a high maintenance than similarly sized comparables without the higher fees, and it will take longer to sell.
Having seen people come out with really high (comparative) maintenances, after paying for the combining renovation, and for the expediter to legally combine the apartments into one unit (important to do to sell, even if your coop is small doesn’t require it), not to mention resulting in some odd layouts I’d never think about buying, I think I’d check out whether moving isn’t a better idea first. Not that it might not be better to buy and combine – just that it isn’t always true.
I did an FSBO here but I let my lawyer do the communicating and she insisted on dealing only with the seller’s attorney. It worked out well. It just took longer than it probably would have otherwise.
You are only 6% apart, are you willing to lose the deal for 6%. Is an apartment worth $500,000 or $530,00, it’s not an exact science?
What Brokelin said.
If you need the space, like your current apartment and location, then buying the new apartment should be cheaper than moving to a larger one and paying a large- apartment premium. Calculate the value of the combined unit, and if it makes sense, bite the bullet.
She may tell you that she does have another buyer but there’s no way you can verify that.
What kind of numbers are we talking about here???
and agree with above – taking out the 6% broker’s fee is not incentive for her not to try to get other buyers. splitting the fee with her might help more.
oh, and to keep it friendly:
realize she has the right to try to get the most she can for it, even if she turns out to be deluded.
And if she comes back to you later, realizing she can’t get more, don’t be punishing – just say your original offer still stands and buy it.