When you’re dealing with homes that are for sale by its owner (FSBOs), no real-estate agent is involved in the negotiations. The same principles for negotiating apply, but there is, of course, no middleman.
How do you begin the negotiations? After your second visit to the Singapore property home you like (the visit where you have explored the house more thoroughly than you did on your first visit), wait a day or two before making an offer, to heighten the sellers’ anticipation and to make your offer sound well thought out.
To determine fair market value, go through computer printout for similar properties in the neighborhood. The bargaining process is similar to bargaining through a real-estate agent, but sitting down face to face with sellers is always difficult. Stay rational and friendly, and remember that your major tool for accepting is fair market value. Your offer is will hand them a quick sale, no more hassles in having a house on the market, and no sales commission to pay.
Secure a lawyer to help with the sale . You should always have a lawyer to protect your interest in a case where there is no real-estate agent involved. But a word of caution, do not hire the same legal counsel as the sellers. It would be at your disadvantage.
Still, they probably will not accept your initial price. So, come back with a second bid. That should usually be the fair market value minus the usual real-estate commission in the area (probably 6 or 7 percent). Of course, the sellers aren’t using an agent, so there is no commission to be paid here.
In the best possible scenario, the buyer and seller will split the amount of the real-estate commission and set the selling price between market value and the price the owner would have netted after paying an agent’s commission (if they had used one). All of the extras, such as closing dates and financing, can be worked out after, or with the attorneys for both sides present. The attorneys will draw up the contract of Sale.
In some cases, FSBOs will be willing to work with you and your buyer’s agent, paying your agent 3–3.5 percent commission. They would not have a seller’s agent, so they would be paying one commission, instead of two. Ask the FSBO if they would agree to this option.
That’s how a neat, tidy sale works. But in real life it does not always these neat . There will be factors that will disrupt the ongoing transactions. The sellers may be a neophyte in this kind of business and expects high hopes for a top-dollar price. When you come up against a stone wall, do not beat your head against it, no matter how much you like the house. Write down your best offer, with your name, address, and phone number, and leave it with the sellers. Tell them to call you if they change their mind, and then continue house hunting. You might want to keep in touch with them from time to time to ask how they are doing.
Do not make another offer, but if they do come down a little, perhaps you will be willing to go up a little. This is how negotiating works in the Singapore property market.
Related articles
- Why it’s So Hard to Sell FSBO Homes (sellingrealestatesf.com)
- MLS VS For Sale By Owner (FSBO) (jackbarryrealtors.com)
- FSBO Disadvantage: Not Easy To Sell Your Own Home (sfrealestatetoday.com)
- Because There is No Commission… You Can Drop Your Price $15,000 and do OK! (sfrealestatetoday.com)
- The Reasons Why Hire A Real Estate Agent (sellingsf.com)
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