April 3rd, 2018 7:39 AM by Jackie A. Graves
Have you found the home you want to buy? If so,
you may be ready to bid full asking price or even more to ensure you beat out
any potential buying competitors out there. This is where emotions can
sometimes outweigh logic, so before you jump in with an offer waaay above
asking price, it’s good to take a moment to consider if the house is also a
some things to consider plus some price negotiation strategies that can help
ensure you’re getting a great home for the right price.
today’s hot real estate market (in most parts of the country) it’s not often
that a seller isn’t willing to negotiate — if not on the price, then on other
matters such as the closing date, or including certain items like the barbecue
grill, the washer and dryer, etc.
off chance that you’re in a market that isn’t boiling right now, you could end
up being the only buyer making an offer. If that’s your case, there’s a good
chance you could end up buying lower than the listing price. Your Realtor
should understand your market well enough to help guide your initial offer, but
here are some things you’ll want to consider…
often that a seller puts his or her house on the market just to see what kind
of offers come in, though it does happen. In large part, sellers want to sell.
But some sellers are more under the gun — they’ve already made an offer on
another home, they’re moving for a job, or their personal situation has
changed. That’s why it’s a good idea to ask their agent why they’re selling.
You may not get a direct answer, especially if their agent has urged them not
to divulge this information, but it doesn’t hurt to ask.
Nothing is accomplished by going in with a
low-ball offer (except sometimes, in the cases of foreclosures or when a home is
significantly overpriced and has been on the market a long time). If you go in
too low, you’re going to insult the seller. If your research shows that the
property is fairly priced, or your trusted agent is telling you it is, make an
offer you feel comfortable with and that your agent believes is reasonable.
offer does not elicit a meaningful counter-offer from the seller, you know you
went in too low. So, try again. Once the seller believes you’re capable of
arriving at a price that is agreeable to them, they’ll be willing to negotiate.
can’t put together a deal on the first property you like, don’t worry. There
will be many more homes for sale. It is VERY common to lose out to another
buyer in today’s market. But it’s just as common to end up finding a home a
week or even a month later that you like even more than the first. Not getting
that first home might be a blessing in disguise.
real estate market is really moving in a lot of areas, so the days of being coy
about whether you like the house or not are over for now. In fact, in some
markets, sellers are looking for offer letters along with your bid. They want
to know your personal story to help them decide between multiple offers.
your chance to sell yourself and convince the seller that you will be
brokenhearted if you don’t get this, your dream home. Have a baby on the way?
Talk about how you can see your baby taking their first steps in this hallway.
Newly married? Describe how it will be starting your life together here. Have
family nearby? Make a point of describing joyous family gatherings in their
want the buyer to know how much you love their home, but you don’t want to be
overcome by emotions. You’ve done your homework. You know what the home values
are in the area you’re searching, and you know how much home you can afford, so don’t allow yourself to
get boxed into a price that is above your comfort zone. If you have chosen your
agent well, this won’t happen. Nevertheless, bad agents have been known to urge
clients to accept counter-offers simply so they can stop working on the
negotiation. Be firm.
make your offer, there will be a space for putting a time limit on how long
it’s valid. Make this a very short period, for example, 24 hours. Having a
longer period just invites competing offers, which is exactly what you do not
seller seems emotionally tied to a certain price on his or her home, instead of
asking the seller to lower their asking price, ask for certain concessions,
such as repairs, that the owner contribute to the closing costs, or that they
leave the washer and dryer, the riding lawn mower, etc.
it’s not uncommon for prospective buyers to believe the deal is sealed at the
offer signing, in many cases the negotiations begin afterward. If you’ve conducted a home inspection, you can ask the sellers for
a cash-back credit at the close of escrow, which can help you complete the
project yourself. You can also ask the seller for a credit to fix certain
issues in the interest of offsetting closing costs.
a first-time homebuyer, here’s a little primer on all that paperwork that goes
into making an offer. Your purchase offer is a written contract that you sign
and submit to the seller. It is accompanied by a certain amount of “earnest
money” (a small good faith deposit to show you are serious about buying the
home). The written purchase offer indicates the amount you are willing to give
the seller for his or her property. If you are working with an experienced real estate agent, he or she will typically
provide a standard purchase offer form which you can complete, sign and then
hand over to the seller to sign. If you are not working with a realtor, be sure
you are aware of state laws regarding the information the offer should include.
your written offer forms the basis of a legal contract with the seller, be
thorough. There are some important details you should be sure to talk through
with your agent and make sure are accurately included on your purchase offer,
amount you are offering for the home and how you will pay the seller (cash,
to protect you if your financing falls through, or if the inspection unearths
major problems with the home (inspection happens after you make an offer)
such as whether the home will come furnished or unfurnished
expiration date, by which the seller must respond before your offer expires
such as any closing costs or other costs which you would like the seller to pay
amount of earnest money you are offering
The size of your down payment
“earnest money” deposit can range from about $500 to 5% of the value of the
home, depending on where you are interested in buying, and the state of the
market. Your earnest money is typically put towards your closing costs;
however, if you enter into a contract with the seller and then breach that
contract, you could stand to lose this money.
make a purchase offer, sign it and submit it to the seller along with your
earnest money (usually done through your agent). The seller has the right to either
sign your offer as is, make a counteroffer or reject your offer outright.
seller accepts your purchase offer, the offer becomes a contract, and you are
on your way to owning the home. If the seller counters your offer, you may
choose to reject his or her offer or walk away. Note: If, for some reason, you
forget to specify contingencies in your offer, there are sometimes legal steps
you can take to back out of the deal. Asking your agent what recourse you have
can also help.
To view the original
article click here Apply to
Buy a Home Apply to