by Stuart R. Scott 

In April we enjoyed one of those great spring snow blankets so thick with water that the earth has trouble absorbing the liquid gold.  As the snow melts, the dormant plants shoot through the snow, given new life.

Much the same is happening in our economy, with a blanket of money thrown out in hopes of creating recovery. We’re looking at long term interest rates under five per cent, a huge tax credit for first time buyers, housing affordability the most attractive in decades, and a nice inventory of homes available.

As evidence of the apparent rebirth, I offer the 1627 homes under contract through Multiple Listing.  That’s more than the 1483 closed in the first quarter of 2009.  Most contracts will have been written recently and will close in 45 days.

Actually, they SHOULD close in the next thirty days….if the buyers and sellers can keep their wits about them.

“Shoulder” markets like these appear to be heaven for all.  Buyers benefit from the financing, sellers are getting offers (we’re even seeing some multiple offers), what could be better?

Negotiations these days can be unnecessarily contentious.  Even after agreeing to the terms of a contract, some sellers harbor resentment because their value is less than they hoped.  Buyers hear from their Uncle Herman in Vegas that they’re idiots….don’t they know that houses sell for half the asking price?

All this becomes problematic when it comes time to negotiate the “inspection” part of the contract.  The inspector does his job, listing every shortcoming in the house, and submits his report to the buyer.  The buyer, with Uncle Herman whispering in his ear, decides to nail the seller to account for the too high price.  The seller says he’s not fixing anything cause the buyer stole the house.  Uh oh.

Normally, the buyer proposes reasonable list of repairs, the seller proposes a reasonable alternative.  Now, too often, both parties dig in their heels, undeterred by the facts.   

Too often, buyer and seller can’t agree on the inspection items.  The contract evaporates.  The seller chases off his best buyer.  The buyer stomps off to try to buy his second choice, eventually learning it costs more to go through the whole process of inspection, appraisal, etc. again than to do his own repairs on the first house.

The worst part is that the seller can’t move on with his life, perhaps to buy another home and take advantage of the great values and rates.  The buyer has to start over, instead of moving into their favorite house in the neighborhood they loved, on their schedule.

Buyers, though your purchase is certainly a business deal, more importantly it’s your HOME, the place you’ll come to every night.  Don’t let Uncle Herman get in the way of your having a home you love.

Sellers, you aren’t “giving” your house away…save your annoyance for those buyers who DIDN’T bring you a contract.  Your buyer is your best friend, ready to help you move on with your life’s plan.

Brokers, it’s your job to help everyone understand that there are no villains here.  The best result for the buyer or the seller is NOT a victory over who fixes the deck.  The best result is buyers and sellers finding common threads and cooperating to achieve their mutual goals.   

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