The art of negotiation is fast becoming a thing of the past. There a number of reasons for that. The market, the season and the temperament home buyers and sellers.
The Cobourg Port Hope Real Estate Market
Over the last 7 or 8 years the real estate market all over Ontario has been pretty hot ! Northumberland County has certainly enjoyed the same experience. As property inventories went down, as fewer and fewer homes were available for sale – SEE OUR MONTHLY REPORTS HERE – the market shortened. As the market shortened, the competition for the few homes that are available increased. The increased demand caused the homes to sell faster. Buyers have been afraid to miss an opportunity to buy a home and have been jumping much faster than in the years before. This shortened market made it negotiation unimportant. There was simply no need in the home selling or buying process for negotiations.
Cobourg Port Hope Real Estate Is Seasonal
Looking back over the years at the Northumberland real estate sales and inventory it’s very clear that our markets cycles. – SEE IT HERE – With the ebb and flow of homes coming on the market (supply). There is a coincidental ebb and flow of home buyers in the market place (demand). This give and take clearly shows us the time when we should expect to see a greater volume of sales and inventory. BUT !!! this tracking is identical to what we’ve seen every year since I’ve been in the business (1989). It wasn’t the time of year that makes the market tight. It’s the inventory. We’ve seen a declining inventory consistently for the last 7 years. Having less and less homes available for sale puts tremendous pressure on the homes that are. The result of this situation has been the decline of the need for a real estate agent to be a professional negotiator.
For While It Seemed A German Shepherd Could Sell In Northumberland
Negotiation Is More Than Dollars
To many, negotiation means getting the best dollar value you can. A Home seller will want the absolute most money they can get when they sell their Cobourg property. And a home buyer will want to get lowest price they can when they buy their Port Hope Home. Too much television, too much The Art Of The Deal coupled with the quickness of the market created an environment that no one even considered negotiation.
There was no need to negotiate. At the time of listing, a seller simply told the world what they expected to get for their home. Buyers basically lined up hoping to be able to get the house for the amount on the listing. Negotiate ??? Not likely.
But the times they are a-changin (Cobourg real estate)
In 2019 we saw a slowing of the market. Inventories started to increase, times to sell started to increase and there were grumblings of an economic slow down. These circumstances created an environment that for the first time in years gave the buyers a more level playing field. Home buyers didn’t yet have an advantage, but at least they had the opportunity to think before they had to write a cheque. With this little bit of a pause, the art of negotiation has returned to the process.
Now, when an offer comes in on a piece of real estate there is not an automatic assumption that it will be accepted. Buyers are writing offers that don’t match exactly what a seller is asking for. In fact they are now trying to make a deal.
Now more than ever – having a qualified real estate agent on your side. Either as a home buyer or property seller -is CRITICAL.
In the last 6 months we’ve helped both buyers and seller out perform the market – by understanding what the target really is and then really focusing on creating a path to get there. It’s old school yes ….. but it works.