Priscilla Toomey: Timing Is Everything in Real Estate
By Priscilla Toomey, Licensed Associate Real Estate Broker, Julia B. Fee/Sotheby's International Realty
Jul. 1, 2015: Timing is Everything. Timing affects every aspect of real estate transactions.
It isn't 2009 anymore--just after the Great Recession. But it isn't 2014, either. Markets change, and demand changes by location and market segment. It would be wonderful if we all had a crystal ball, but we don't. So it's important to learn what the market is saying about your house as soon as you can in the sales process and adjust accordingly – several times, if necessary – until you find the "sweet spot" for your home.
To do this it is important for you to remain engaged, initially in the process of learning what the market is telling you and then in the negotiations. Many people lose a home because they make assumptions about what is in the other party's mind – which may or may not be there at all.
The real estate adage "location, location, location" is modified by condition, layout, and other factors. But every house has a price at which it will sell. The hard part is to be willing to find that price by listening to the market and responding to it on a timely basis. Usually, the higher the price point, the longer the house will take to sell. That's because there is typically a smaller pool of buyers and their expectations are higher.
How soon in the transaction is it wise to negotiate things other than price, closing date, and contingencies? Much later in the transaction than most people think. First, the lawyers will draw up and negotiate a contract. Then the parties need to sign it and the buyer puts down the 10% due at contract.
If there is no mortgage involved and the inspection has already taken place, the transaction then becomes non-contingent. If the inspection is done but there is a mortgage, the transaction will remain contingent until there is a mortgage commitment.
Often the seller and buyer may not see eye to eye about things that are discretionary to the transaction, such as the purchase of furniture. Sellers often have a higher estimate of value than buyers, but the bottom line is that if they don't agree, the transaction is put at risk unless the conversation takes place only after everything else is locked in.
How far ahead should you want to close the transaction? Sixty to ninety days is typical. As they say, life happens, and it can certainly affect your transaction if the timing drags on for too long. Obvious "happenings" are death, divorce, and relocation. But unexpected factors may intervene, as well – the economy can be unpredictable, as we have experienced in recent memory.
The key is to pay close attention to the timing, as it affects the market your house is in, what you want to discuss with the people on the other side of your transaction besides price and the basic terms, and when you need to get your transaction closed.
Pictured here: Priscilla Toomey, licensed associate real estate broker, JD, ABR, Top5, certified EcoBroker, SRES with Julia B. Fee/Sotheby's International Realty, 2 Park Place, Bronxville, NY 10708; cell, 914-559-8084; e-mail,
Photo courtesy Julia B. Fee/Sotheby's International Realty
