When I am talking with both vendors and purchasers I will often refer to three different prices that may assist in achieving the result that they are both aiming for. This is particularly relevant in Auction situations which are the most popular process in the Eastern Bays for buying and selling homes.
As the vendor there is the price that you WISH your home is worth. This is often based on what you need to achieve from the sale of your home to enable you to move on to the next – and is often what your “advisors” believe it’s worth.
Then you have a HAPPY price. This is the price you would accept for your home and be happy with the outcome.
Then there’s the GRUMPY price. Reluctantly, you would sell at this level to enable your next move to occur. This is often the price that the market is prepared to pay and is sometimes the price that your home is truly worth.
So, you need to work with a real estate agent who works towards your WISH price. “Goals set are goals achieved” and this should be their focus throughout the campaign. However you, and only you, should be mindful of that GRUMPY price and should an offer fall short of your WISH price, remind yourself that the presented figure may also allow you to move on. I always ask my vendors to have a GRUMPY price – but to never disclose it to me so that all of us retain the WISH price as the target.
It works in the reverse for purchasers. You also have a WISH price e.g. “I wish I could only pay this for it” – and you duly tell everyone at your house warming party!! Then you have your HAPPY price – “Well I paid this for it and here, have a glass of wine on me!” Then you have your GRUMPY price and at the house warming it comes out as “Well I paid XXX but hey – I’ll be here for 10 years. I didn’t pay too much, I may have paid it early.”
At the time, it can often feel like a real stretch for both of you – and it often is. It is not every day you spend hundreds of thousands of dollars and the difference between you securing a home and moving on usually ends up being tens of thousands. So yes, that is a consideration; however unless there is simply ‘no more money’, with a skilled negotiator and a thought towards the future this hurdle is invariably overcome.