Everything You Need To Know About Real Estate Negotiations

Whether you’re buying or selling a home, one of the most important parts of the process is the negotiation phase. This means different things whether you’re buying or selling a home. When you’re selling a home, you’re usually looking to get the most money for your home that you possibly can. If you’re buying a home, you want the lowest possible price for the home. Hence, the reason for real estate negotiations. Buyers and sellers must meet somewhere in the middle. For your consideration, we’ll break down some of the most important aspects of the real estate negotiation process.

The Cost Means Different Things

As we stated above, buyers want the lowest price, while sellers want the highest price possible for a home. Whatever side you’re on, expect to meet somewhere in the middle. The price of the home has to make sense for both sides. The seller wants the sale of their home to make sense financially and the buyer wants to home to fit into their budget while getting the things they desire out of the home.

The Financing Process Is Complicated

If you have your mortgage fully approved prior to making an offer, you’ll be able to shorten the closing time of the home. The reason for this is that the preapproval shows that all of the buyer’s finances are in order and there will be no financial problems in the transaction. Sellers often prefer these buyers since they can be trusted to close properly and there won’t any issues with the real estate transaction. The property also won’t be on hold for months on end.

The Date Of Closing Matters

If sellers need to get their home off of the market fast, they can negotiate when the closing date will be. As a buyer, this matters because the next month’s mortgage payment is skipped once you close on a house. The closing date affects when exactly this payment doesn’t need to be made, which can have a positive effect on your finances when it’s timed right.

Closing Costs Are Actually Paid Upfront

Escrow is when the mortgage company holds the money for taxes and insurance, which is the prepaid closing costs. Buyers sometimes ask sellers to pay a portion of the closing costs. This could be a flat fee or up to 3 percent of the included mortgage. This could all have an effect on the asking price for the home.

Just Like A Car, Homes Can Come With Warranties

Buyers can ask for a warranty on the home, or the seller can offer one. This warranty typically covers the home’s appliances and utility systems. This provides a protection if things like the air conditioning or the dishwasher break after a certain period of time and need repair. This may make the home extra enticing to buyers and give sellers an advantage to get their home off the market quickly.

10 House Museums that Tell the Story of New England

The Northeast and New England are home to some of the most historic estates in the country. If you drive through almost any small town in New England you’ll notice houses that proudly wear signs giving the year the home was built, with many dating back to the 1700s. Many of these homes have fortunately been preserved and opened to the public as museums.

The area isn’t just full of old colonials, either. Mansions in Rhode Island, estates in Vermont, tenement buildings in New York City, and even a few modern feats of architecture in Connecticut sprawl across the region. Here’s a list of 10 must-see homes-turned-museums in the Northeast:

1. Mark Twain House, Connecticut

In 1873, Samuel Langhorne Clemens (Mark Twain) and his recently wed wife, Olivia began work on their home in Hartford, Connecticut. Twain would go on to live what he described as the happiest and most productive years of his life. The museum holds many artifacts from Twain and his family, including his last pair of spectacles.

2. The Glass House, Connecticut

The Glass House is a 49-acre experiment in modern architecture that lies in New Canaan, Connecticut. The structures on the estate were built in 1949 with industrial age materials like steel and glass (the main house being comprised of glass).

3. The House of Seven Gables, Massachusetts

Salem, Massachusetts is mainly associated with the Salem Witch Trials and various pop-culture references that tie it to the supernatural. Most of the witch trials of 1692 involved residents of neighboring Danvers (then Salem Village). The House of Seven Gables was built by a Salem sea captain named John Turner in 1668.

4. Old Sturbridge Village, Massachusetts

As its name suggests, Old Sturbridge village is a reconstructed village that depicts an average New England village in the 1830s. It includes a school, country store, bank, a working farm, and several homes.

5. The Breakers, Rhode Island

The Breakers was constructed as the summer home of Cornelius Vanderbilt II in 1893. It is a gilded age mansion on the ocean that represents the opulence and grandeur of its time.

6. Hildene, Vermont

The home of the Lincoln family built in Manchester, Vermont in 1905. It was constructed by Robert Lincoln, son of Abraham Lincoln and was excluseively the home of Lincoln decendents until 1975.

7. Jackson House, New Hampshire

The Jackson House in Portsmouth, New Hampshire is the oldest wood-framed house in New Hampshire. It was built ca. 1664 and has post-Medieval English architectural motifs.

8. Castle Tucker, Maine

Castle Tucker was built in 1807 in coastal Wiscasset, Maine. Visitors are offered a glimpse into the lives of the Tuckers, a well-known shipping family. Economic difficulties meant the home was seldom renovated and one of the most well-preserved Victorian era homes in the region.

9. Tenement Museum, New York

While many homes on the list tell the story of well-to-do families, the NYC tenement museum takes visitors through a multi-floor tenement building that housed over 7,000 working class immigrants.

10. Lyndhurst, New York

Lyndhurst, an estate overlooking the Hudson river in Tarrytown, New York, is an American Gothic revival mansion. It housed many prominent figures including a a New York City mayor and a railroad tycoon.

Why You Need to Have Social Media

Everyone is talking about it but not many real estate professionals are doing it…social media marketing. The numbers say it works but the competition has yet to embrace the tech savvy marketing that only benefits their sellers. Recent studies show that social media does influence the products we buy.

Traditionally, the number one way to market has been word of mouth advertising, but now social media has the power to influence consumers to buy according to what their family and friends like. Social media marketing has become word of mouth marketing on steroids.

This chart below shows a study from eMarketer citing the number of internet users who would buy a brand from social media influence.


eMarkerter also found that; “while that is a relatively small percentage, younger consumers were more likely to buy because of a “like.” They found that 23% of US internet users under the age of 35 said they would buy a brand because of a friend’s social endorsement, and nearly as many internet users between the ages 35 and 49 would do so. Females and males were about even by this metric, at 18% vs. 17%”.

What does this mean for sellers? All real estate professionals need to be utilizing social media including blogs, facebook, twitter and more to promote their properties. Not doing this is a disservice to the seller. The National Association of Realtors in 2011, found that 52% of the first time home buyers were between the ages of 24 and 35 years old. First time home buyers made up 37% of all homes purchased. These numbers directly correlate with the study of influence of social media on buying decisions.

So when looking to make a decision on who to list your home for sale with make sure your real estate professional is social media savvy.