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Real Estate Agent, Homeowners motivation and cooperation
By arlene | June 30, 2008
It is important to analyze how motivated the owner is to sell and how cooperative you expect him to be in the sales effort. Owner motivation and cooperation are very important factors in determining whether or not a property will sell. To conduct this analysis, use the information obtained in qualifying the seller.
At the other end of the scale, a seller who scores only sevens is highly motivated and extremely cooperative. A seller scoring six fours is average in the current market. If the total profile lies between three and seven, you are working with a seller whose motivation is above average and from whom you can expect reasonable cooperation.
The seller’s profile should, however, be carefully interpreted. A seller who is in dire financial straits and is being forced to sell, may not be in a position to allow adequate time, assist with finance, consider an exchange or paint the outside of his building. All adverse factors may, however, be offset by a reasonable asking price. Use your discretion when interpreting a diagram. In the case of the seller in dire financial straits you may have a score of two sevens and four ones, yet the sale may be one that you are very willing to handle. These exceptional situations need to be individually assessed and carefully interpreted.
The whole question of seller motivation and cooperation rests on a single, highly important issue: To what extent is the seller willing to assist in making his property scarce relative to other comparable properties in the market? This particularly applies in a buyer’s market, that is, a market which experiences a perceived oversupply of the type of property you are marketing. The way to make a property relatively scarce, even in a buyer’s market, is to position it favourably relative to competing properties. Favourable positioning is achieved by setting an appropriate price and sales terms, taking into account all relevant factors which include the condition of the property, the supply and demand situation and the development and/or redevelopment potential of the property.
It is important that the seller cooperates with you in positioning the property favourably in the market place by —
- pricing the property realistically;
- offering competitive sales terms (i.e. be willing to consider alternatives to a cash sale should this be necessary);
- being willing to prepare the property for marketing.
These issues should be discussed with the owner and positive or negative implications pointed out. This brings us to a discussion of buyer appeal, that is the demand for the property, given its market positioning.
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Topics: Development, Market, Property, Sale | 6 Comments »
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