Legitimate Negotiations Or “Gotcha” Real Estate

Things change in a real estate transaction as it runs its course, you can count on it. Most people enter the transaction taking everything at face value – what you see, or perceive, is what you are receiving. There are as many components to a transaction, however, as there are systems to a house, and just about anything can happen. As things happen, there can be a need for an adjustment by one or both parties. When everyone contracts with integrity, and is committed to keeping things on a par from the base agreement that the parties originally agreed to, everything works out well for all parties given the changed circumstances.

In a changing transaction make sure that you understand the extent of the “new” thing and what it means to you. If an inspector finds a window with a broken seal you don’t need to have every window in the house replaced. You have a nominal repair, not many thousands of dollars of remodeling. Asking for the windows to be replaced in such a situation, as incredulous as it may seem to most readers, happens. It may be disingenuous, or predatory, but it happens. Not good and the request is not warranted or valid.

Be sure your agent understands what you want in your transaction, and that you understand your contract. Do you want the Seller to pay for recurring and nonrecurring closing costs up to a certain amount or percentage of the purchase price, or are you instructing your agent to have the Seller pay for all the closing costs? There is a big financial difference – be clear in your communication and understanding. You have a responsibility to know what you want and to communicate it to your agent so he can work effectively on your behalf. Not telling your agent exactly what you want in a transaction is like telling the doctor, “I hurt doc, find it.”

Real estate form contracts are written with plain, easy to understand, language. They cover many topics with clauses that have evolved from decades of litigation stemming from misunderstanding or abuses. Don’t invite litigation or cause it unnecessarily. Be clear about what you want, make sure that your contract addresses your wants and needs so you can achieve your objective. When things change, don’t look for the gotcha, look to the contract details to see how you are protected and what your options are as you move forward.

Our advice: What was your intention when you signed the contract? When you sign your name on a contract you should mean it. Its about integrity. Cheating people out of a few dollars will leave you miserable from not only the bad feelings of the other party, but the innate shame and guilt that will reside within, consciously or subconsciously. Were you planning all along to come back and nibble, or do you have a real concern about something new in the transaction? Do you think a gotcha is okay when it comes to money – the quickest machete wins? Do the right thing and you will benefit in many ways – most of them not known at the time you decide to do the right thing. When transactions go sour by parties looking for the “gotcha” in a transaction, the joy leaves the transaction and so do many of the subtle benefits that are forthcoming when everyone gets along and continues to give as they approach the close of escrow. Continuing to give can be leaving the riding mower without it being in the contract, overlooking a missed deadline and staying committed to the other party, etc.

The best transactions are win/win – both parties benefit! It isn’t always about price – there are many ways to balance the “win” factor in a transaction other than price. The art is to find out what the biggest “win” is for your counterpart so your win comes with less of a loss from your win criteria. When it comes to choosing professionals to assist you with your real estate needs… Experience is Priceless! Lisa Wetzel & Jim Valentine, CDPE, SFR, RE/MAX Realty Affiliates, 775-781-5472. carsonvalleyland@hotmai l.com, www.carsonvalleyland.com

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Lisa Wetzel and Jim Valentine are the authors of this blog. Lisa, Jim and Jessie are experts in Carson Valley , Carson City and the tri-county area of Douglas County , Carson City and Lyon County. Call our team anytime at 775-781-5472 or 775-781-3704. To Search for Homes go to: Carson Valley Listing Book or visit our website at www.CarsonValleyLand.com