Dueling Comp’s (and Spreadsheets)

Real estate negotiation can involve lots of back-and-forth and numerous fine points, but in my experience, it’s usually not productive to get into a detailed discussion of/argument over the Comp’s, also known as “Comparable Sold Properties.”

Put it it this way:  I’ve yet to have the other side say, mid-negotiation, “you know, your Comp’s are right, ours are wrong . . .  it’s a deal!

Which is not to say that each side shouldn’t know the Comp’s, well, and be prepared to negotiate based on that knowledge.

Establishing Value

But back to tactics.

At the end of the day, Sellers can either get more from Buyer #2 than they can from Buyer #1 . . .or they can’t.

If the latter, the prudent thing to do is circle back to Buyer #1.

batsMeanwhile, Buyers can either find a nicer home at a better price elsewhere ” or they should revisit the putatively overpriced home, and pay (closer to) the Seller’s asking price.

Which is why, given the testing and start-and-stop negotiating that can accompany some deals, it’s important to keep things professional and objective (vs. personal and emotional).

In other words, “always leave the door open.”

See also, “Which of These Four Factors Are Relevant for Pricing a Home?“; “More Than This, Less Than That“; “Why the Neighbor’s Home Isn’t a Comp“; “Real Estate Bracketing ” Advanced Beginner Version;” “The Science ” and Art ” of Doing Comp’s“; and ““Bracketing,’ Explained.”

P.S.:  Think the subject of establishing fair market value has ever come up before??  🙂

About the author

Ross Kaplan has 19+ years experience selling real estate all over the Twin Cities. He is also a 12-time consecutive "Super Real Estate Agent," as determined by Mpls. - St. Paul Magazine and Twin Cities Business Magazine. Prior to becoming a Realtor, Ross was an attorney (corporate law), CPA, and entrepreneur. He holds an economics degree from Stanford.

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