CONTRACT NEGOTIATIONS – “WIN-WIN” IS ALWAYS A WIN!

Negotiations are a crucial part of all real estate transactions.  We negotiate far more often in our everyday lives than we realize.  We are negotiating all the time, for example, the time we go to lunch with a friend, the date when a report will be submitted to the boss, the price  of an item at a flea market, who will go first in a game, etc.  All examples of daily decisions involving another person or persons, requiring compromise – requiring give and take.

In a real estate transaction, negotiations are not only about the price. Although price is the entry ticket to the rest of the transaction, there are other terms and conditions that must be negotiated, for example, the timing of the sale – when it will close, the amount of down payment, the condition of the home - “as is” or including repairs that the buyer has requested.

Ideally the goal is to have a “win-win” situation in real estate transactions. While there are some people that view contract negotiations as a “win-lose” outcome, the truth is everyone will benefit by striving for a “win-win”.  Compromise is an important part of getting to a result that will satisfy both sides.  It’s important to identify terms that need to be negotiated from terms that are true “deal breakers.” But there are really, very few conditions in a standard contract that are serious enough to kill a deal.  Sometimes emotions are responsible for turning what should be negotiable terms into non-negotiable terms. 

Often communicating voice-to-voice is more effective in getting to a “win-win” transaction, than emails and texts. Some issues need to be discussed to understand the underlying motives of the parties. Knowing everyone’s key terms up front is important, because while something could be a non-issue on one side, it could be the very selling point that makes it a win for the other side.

Buyer and seller have to express and make known to their agent, what’s really important to them.  Conversely, buyer and seller have to avoid looking for a “win-lose,” when the issue is not important to them. From the beginning of the transaction, it has to be about the issues rather than the emotion.

One of the keys in negotiating is to recognize that each party will have his/her own perception coming into the negotiations, and that is his/her reality. It’s important to stay level-headed during negotiations. Though it may be an emotional experience for both buyer and seller, it’s critical not to let negative emotions take over and become a factor. In the end,  “win-win” comes about when a solution is acceptable to all the parties, and there is a sense of trust and fairplay.

BEFORE YOU PUT YOUR HOME ON THE MARKET…

Before you put your home on the market, here are 3 fundamentals that are critical to getting the best result:

 FUNDAMENTAL #1:  INITIAL PRICING – GETTING IT RIGHT

Whether it’s a buyer’s market or a seller’s market, right-pricing your home is the key to getting the best price and a timely closing.  Since over 90% of home buyers pre-shop on-line, it’s critical to zero-in on the right price range at the onset of the selling process.  Buy understanding your target market - your ideal buyer - you and your realtor will be better able to select the price range that works for your home.   The goal is to reach the largest audience possible for your home’s price range. The higher the price range, the smaller the audience; the lower the price range the wider the audience.

 FUNDAMENTAL # 2:  STAGING – EVERY HOME NEEDS SOME

Staging is critical to a timely sale. 81% of buyers stated that staging allowed them to visualize the property as their future home. Also, 68% of staged homes sold for 9% more than an un-staged neighbor’s home. Staging does not necessarily require a total redo of a house.  Certainly, repairs must be done, a thorough cleaning inside and outside is essential, decluttering, and  perhaps painting (neutralize strong colors).  We also introduce accessories and decorative items to create a scenario that will help the buyer envision themselves in the home and enjoying doing the things that they love to do!  

FUNDAMENTAL #3: POSITIONING – PUTTING YOUR BEST FOOT FORWARD

Similar to staging, when marketing a home, the focus should be on lifestyle.  This is even more significant here on the North Fork.  So many of our buyers are attracted to our community because of the natural beauty of the land and water that surrounds us.  Our North Fork is differentiated from the South Fork, by our laid-back, easy, lifestyle and all that we offer year-round but especially in the summer months.  Your home also has unique assets. Be sure to make a list of all the great aspects of your home and property, that may not be obvious.  What you love about your home, your likely buyer will also love!

We believe in and practice these fundamentals to marketing homes for sale. 

If you’re ready to sell, call us at 631 765 5333 and we will meet with you and you will see these fundamentals put into action for your home!

SOURCE REFERENCE: RISMedia, July 11, 2019

SELL YOUR HOME THIS SUMMER

The North Fork, in summer, is absolutely the best place to be!  We are a destination, resort community this time of year – everything is green, flowers in bloom, amazing waterways – bays, creeks, harbors, Long Island Sound - for boating, kayaking, swimming, we have spectacular sunrises and sunsets, we have open land, farms, vineyards, fun breweries, great restaurants and interesting shops.

Who wouldn’t want to be here?  EXACTLY!!!  If you’re selling your home, now is the time to make it shine and aggressively market when everything around you is at its peak.  So, avoid the temptation to slow down with the summer heat, and keep the marketing process going. 

Here are 5 TIPS to keep things rolling and get your home sold in the height of the North Fork “in-season”:

1.    KEEP YOUR HOME IN “SHOWING SHAPE” with beds made, dishes in the dishwasher, you know what I mean.  It doesn’t have to be spotless- I’d rather show a house that’s just a little messy, rather than lose an opportunity to sell it. Prospective buyers understand its summer and the family is about.

2.    SAY “YES” TO THOSE APPOINTMENTS when your agent calls to show the house.  There are about ten weeks left to summer, and you should take every opportunity to show your house in the prime season. 

3.    DO THOSE OPEN HOUSES even though you’d rather hang in the pool.  It’s only a couple of hours a week, you can use the time to go swimming, boating, shopping, lunch!  Buyers who come to open houses account for 20% of our sales. Serious buyers plan weekend time to shop for homes on the North Fork.  Open houses help agents as well, since they have more flexibility to schedule a showing with their client, during the broader time slot of the open house. 

4.    DON’T LET THOSE LAZY DAYS OF SUMMER slip through your hands.  Keep up with your home, if something breaks fix it. Keep up with the lawn and gardens. And welcome every opportunity to show your home.

5.    GIVE EVERY OFFER SERIOUS CONSIDERATION. View the offer without thinking of possibilities that may or may not happen, try to keep emotion out of the evaluation. Look at it as a business deal and give it your best thinking. Make the deal and enjoy the rest of the summer! 

Call us, at 631 765 5333, we’re happy to help you through the process from the first day, through the closing. Or visit our office at the corner of Main Road and Horton’s Lane in Southold. 

INDEPENDENCE DAY 2019 - CELEBRATE OUR FREEDOM

On July Fourth, we commemorate the signing of the Declaration of Independence, the document that marked the emergence of the United States as an independent, self-governing nation, guided by the principle of liberty.  It’s good to remember that the freedom we value today was earned by the bravery of the American statesmen who signed this document, putting their lives, reputation and personal property at risk. Fifty-six men, supported and guided by many brave, hard-working and dedicated women, stood together and affirmed:

            "We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights that among these are Life, Liberty and the pursuit of Happiness."

            

            In 1776, as copies of the Declaration spread through the states and were read aloud at town meetings, religious services and public assemblies, Americans marked the occasion with celebratory rituals. They lit huge bonfires, "illuminated" their windows with candles, fired guns, rang bells, removed the symbols of the monarchy from public buildings, churches and taverns, and decorated the walls of their homes with newspaper copies of the Declaration of Independence. Today’s fireworks mark this great event with an exuberance our forefathers would have appreciated.

     

            We will be handing out replicas of the Declaration of Independence and American flags from our front steps during the Southold Town Annual Parade down Main Street.  The parade kicks off at 12 NOON at the Firehouse and ends at 1PM at the American Legion Hall.  Hope you all will be there.  Check local newspapers and websites for fireworks – lots going on!   It’s a great way to celebrate our wonderful country’s independence and teach our children the reason for the celebration. 

May God Bless America.

IN MEMORIAM

CHRISTOPHER WYATT DRUM

                                                 MAY 25,                                              JULY 2,

                                                   1972                                                   2014

HOMES BOUGHT BY INVESTORS AT RECORD HIGHS!

The Wall Street Journal recently published an article on page one, reporting that “big private-equity firms, real estate speculators and others made up more than 11% of home purchasers in 2018… the highest percentage on record and nearly twice the level before the 2008 housing crash.”

               Analysts expected the investor buying to slow down as the real estate market recovered and  home prices increased, but in the past two years, investor purchases surprised analysts and surpassed the previous peak in 2012.

               The reasons given for the increase in investor purchases are, “strong rental demand, technology that facilitates buying homes online and low interest rates that make other investments less appealing.” But I believe another very significant reason is real estate as a hedge against a likely stock market decline on the horizon – one or two years away.  What better hedge than a hard asset like real estate?!

               If you are looking to diversify your investment assets to hedge against a stock market decline, buying a commercial property or investing in a rental home makes good sense.  Buying a two-family home, makes even more sense than a single-family home.  We have several two-family homes available for sale, in good condition, with tenants in place.  Call us at 631 765 5333. Let’s make a deal!

At Beninati Associate, we listen and pay attention to what’s going on in the economy; we care about you and work hard for you; and we get you the best result whether you are buying or selling.

                             

Source: Investors Buy Homes at Unparalleled Rate, The Wall Street Journal, June 21, 2019, front page -A1.

RENOVATE OR BUY TURNKEY?

“Should I buy a home that is turnkey or one that needs some renovation?”  This is often an important decision factor for prospective second-home buyers.  In the past few years, the low level of inventory, has made this question even more critical, as buyers have less selection and have to make trade offs that they may later regret.

The most obvious difference between a turnkey and one that needs some updating is the initial cost.  When you buy a turnkey home, you are paying for the time and investment of the current owner.  You are also opting for the style and taste level of the owner.  When you buy a home that needs renovation, you are making an investment of time and money in the home, but you will have input into design and quality decisions that suit your taste level and pocketbook.

Some buyers prefer to buy a home that does not need any work and recognize that they may be paying a premium but prefer to have the use of the home sooner rather than later.  If the trade off is a higher price that you can afford, all other things being equal, it’s probably a good decision for you.

But sometimes, the trade off may be a very important requirement that gets lost in the decision-making process.  When a buyer finds himself/herself giving up desired location for “pretty” – it’s time to stop and reassess.

“Location, location, location,” is a real estate adage that holds true for every purchase and never gets old.  It’s probably the best advice I can give any buyer – when you have a choice between a great location and a fantastic looking house – STOP – and be sure you will be happy in that house 2-3 years from now, or will you be pining for that waterfront or water-view location?

When buying a home in need of improvements, it’s important to be sure the renovations add value. Will you get a return on your updates?  Certainly, there is the non-tangible return of enjoying the redesigned room, or bathroom, or adding a pool, but it’s also important that there is a tangible improvement in value.  In most cases, thoughtful, tasteful updates add to the market value of a home and faster turnover when its sold.

On a personal note, we have always purchased homes with the intention of making improvements and it has always paid off. 

Sometimes, there is a wonderful home that needs no renovation and sometimes there’s that diamond in the rough that turns into a sparkling jewel – it’s for you to decide.

We would be happy to help you evaluate whether to buy turnkey or buy and renovate.  If you choose to renovate, we’ll assist you with professionals to help you get the job done and move into a home, where you want it to be and how you want it to be! Call us at 631 765 5333 or come see us at our office at the corner of Main Road and Horton’s Lane in Southold.

IS IT TIME TO RIGHT-SIZE?

Are you wondering if your home still works for you and your family? You may be feeling cramped in your current house or perhaps your home is more than you need since you’ve become an “empty nester”. Are the costs of upkeep more than you want to spend?

It may be time to “right-size”- choosing a home to fit your current needs. Here are a few ways to tell if it’s time to make a move and look into purchasing a home that's better suited to your current lifestyle.

Cleaning rooms that are seldom used

No one wants to spend free time dusting vacuuming and caring for rooms that are almost never used. Consider how and where you spend your time at home. Most people spend most of their time in a few key spaces like the bedroom, TV room and kitchen. If you’re spending more time cleaning rooms than living in them- it may make sense to right-size to smaller space.

Too much or not enough lawn

With family, friends, work and extracurricular activities, the yard is one part of a property that many people don't have time to care for or even use, consistently. Other people love spending an hour or so in the garden each day or sipping a cup of coffee while the sun is coming up. Finding the right space to entertain, relax after a hard day or give the kids room to safely burn off some energy, is important. Needing more outdoor space or having too much outdoor space to maintain, may be one of the factors in deciding whether it’s time to move to a different house.

Cramped quarters

When you have several younger children, space is always an issue. When the kids grow up, things change—including the size of the home needed. Whether you're a growing, or the family dynamic is shifting so there are fewer people in the home, the size of the house is an important factor.

Gathering space for the family

No one likes crowding into a tight space for dinners or special occasions like birthday parties and other family celebrations. Sitting in a huge great room by yourself thinking about how much wasted space you have, for only two or three people in the home is also an indicator that it may be time to right-size.

Thinking about recent life changes like an elderly parent moving in or adult kids moving out can help you decide when it's time to make a move. Keeping your finances and life plans on track isn't always easy, but as a family evolves, so too must your living accommodations. Right-sizing up or down makes sense.  The key is to recognize when it’s time! At Beninati Associates we are here to help you with those decisions – call us at 632 765 5333 or come visit our office at the corner of Main Road and Horton’s Lane in Southold.

Source: RISMEDIA, June 10, 2019, Upsize or Downsize- which is right for you? Meghan Belnap