The Art of the Deal
The next-door neighbor put her house on the market this week. Shiny new sign in the yard complete with one of those holders for flyers that advertise the good things about the house and the asking price, too.
Since I don't want to appear nosy, I send Kid2 to grab one of the flyers.
She hands it to me and asks if the amount on the flyer is what our house is worth.
"Not exactly, kid. That's just a ballpark number to start with," I said. "First of all, knock 10% off that before we begin to talk. What will happen after that is that somebody who likes the house will make an offer. They'll intentionally give a price a whole lot lower than they want to pay. Then the homeowner will think about it and make a counter-offer. Then the potential buyer will think about it and decide to make another offer to that one. It could really get exciting for the homeowner if a couple of people are interested in the house because then they're really bidding against each other and upping the price."
"Why do they do it that way, Dad?"
"Not sure, really. Something to do with capitalism and the American Dream. I mean, it's hers and she can do with it what she wants. And buyers want to get a good deal...or at least one they can be comfortable with and afford. You buy cars the same way, too."
"Why don't we do everything that way?"
"I dunno. They do in some parts of the world, but I don't really care about haggling over a can of soup. I'd just as soon pay the asking price than stand there and discuss an agreeable price for 10 minutes. But really, you kinda can haggle in a roundabout way most all the time. You can wait to buy something knowing they've got a big sale coming up, or you can go to another store that has it at a cheaper price. You can buy in bulk sometimes and get something cheaper. If something's slightly damaged, they have scratch 'n dent places. You can shop online for the best prices for hotels and things. When you think about it, supply and demand is sort of built-in haggling."
*silence* (she had pretty much tuned out. I should've stopped at "I dunno." She's now more curious about what the dog is so curious about)
But what I know is the price on the flyer is what the government appraised MY house for and I feel pretty sure there isn't a chance that I could get that price on the open market...
...and I think I'm going to have to haggle with the government this time around on that end of things.
But let's be honest, shall we? It's awfully hard to haggle with the government...and my neighbor's flyer isn't making anything easier on that front.
The next-door neighbor put her house on the market this week. Shiny new sign in the yard complete with one of those holders for flyers that advertise the good things about the house and the asking price, too.
Since I don't want to appear nosy, I send Kid2 to grab one of the flyers.
She hands it to me and asks if the amount on the flyer is what our house is worth.
"Not exactly, kid. That's just a ballpark number to start with," I said. "First of all, knock 10% off that before we begin to talk. What will happen after that is that somebody who likes the house will make an offer. They'll intentionally give a price a whole lot lower than they want to pay. Then the homeowner will think about it and make a counter-offer. Then the potential buyer will think about it and decide to make another offer to that one. It could really get exciting for the homeowner if a couple of people are interested in the house because then they're really bidding against each other and upping the price."
"Why do they do it that way, Dad?"
"Not sure, really. Something to do with capitalism and the American Dream. I mean, it's hers and she can do with it what she wants. And buyers want to get a good deal...or at least one they can be comfortable with and afford. You buy cars the same way, too."
"Why don't we do everything that way?"
"I dunno. They do in some parts of the world, but I don't really care about haggling over a can of soup. I'd just as soon pay the asking price than stand there and discuss an agreeable price for 10 minutes. But really, you kinda can haggle in a roundabout way most all the time. You can wait to buy something knowing they've got a big sale coming up, or you can go to another store that has it at a cheaper price. You can buy in bulk sometimes and get something cheaper. If something's slightly damaged, they have scratch 'n dent places. You can shop online for the best prices for hotels and things. When you think about it, supply and demand is sort of built-in haggling."
*silence* (she had pretty much tuned out. I should've stopped at "I dunno." She's now more curious about what the dog is so curious about)
But what I know is the price on the flyer is what the government appraised MY house for and I feel pretty sure there isn't a chance that I could get that price on the open market...
...and I think I'm going to have to haggle with the government this time around on that end of things.
But let's be honest, shall we? It's awfully hard to haggle with the government...and my neighbor's flyer isn't making anything easier on that front.
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