June 11th, 2014 12:19 PM by Jackie A. Graves, President
home can be a highly charged, emotionally draining time under any
circumstances. It's easy to let the process get the best of you. You have to
get tough if you want to meet your real estate goal.
a hot market
Looking to buy a house in a hot
market, where the neighborhood is especially popular or because it caters to
first-time buyers requires an extra level of grittiness. Be the "nice
guy" and you can overpay for the home you want, or lose out altogether,
because you weren't willing to negotiate.
"In a competitive market,
you have to have a strong backbone. It's going to get tough out there,"
said Mark Allen, a California real estate expert. "Many buyers today are
facing tough conditions, particularly in entry-level neighborhoods where there
is tremendous competition for well-priced homes. They're having to contend with
multiple offers on homes and then deal with the disappointment of being outbid
time and again. I have seen buyers who have had to make up to six or eight
offers on different homes before they were able to finally buy one. You have to
be tough and stay tough, even when you feel like giving up."
MSN recommends doing a little
homework on your neighborhood of choice to increase your chances of getting that
house. "Researching who lives in and around the home you're [considering]
buying is of the utmost importance," said MSN. "By speaking with neighbors, you'll gain a
sense of what life is like in the community and perhaps even pick up some
insight into why the sellers are moving." Every little bit of info can
help during negotiations.
Getting tough starts at offer
time. No one wants to pay more than they're comfortable with. But if you're in
a market where homes are selling fast with multiple offers, you may need a real
estate market reality check. Go in with an offer that's too low and you could
turn off the seller, who will then reject your offer and move on to the others
that were already more in line with what they were hoping to get for their
Real estate agents regularly
caution clients against making offers that are exceedingly low for that very
reason; being in a location and/or a price range where multiple offers are
becoming commonplace can add another layer of pressure to an already stressful
That doesn't mean paying full
price no matter what. It means being aware of what's going on in the area
you're interested in, hiring a trustworthy agent who is a tough negotiator, and
listening to your agent's advice. You will want to choose an agent who is a
strong negotiator and who can get tough on your behalf. An experienced agent
with a history of successful real estate transactions should be better able to
navigate the murky real estate waters, using existing relationships and
relationship-building skills to help give you an edge.
Being Tough While In Escrow
It's not over once you have an
accepted offer. Thirty or 45 or 60 days or more can feel like an eternity, and
things will undoubtedly come up during escrow. The title company will need
proof that the home you owned in another state eight years ago is not still
owned by you, and you'll have to scramble to provide proof of sale. You'll have
to dig up your original divorce decree. The inspection will turn up something
you weren't expecting, and then here comes that negotiation thing again.
"Buyers have the ability to
continue negotiating the price after escrow has opened during their buyer
investigation period," said Eller's Sellers. "The important thing for any buyer to
remember is that negotiating for credits and repairs is just that -- a
negotiation. It is highly unlikely that the seller will agree to everything the
buyer has asked for. However, at the same time, sellers need to understand that
once a repair issue has been identified, they will be required to disclose it
to any subsequent buyer. So it is usually in their best interest to agree to
some sort of compromise."
At the end, if you stay strong,
you'll end up with the keys to your new home. And then you can go back to being
the nice guy. Until it's time to start negotiating with a contractor...
Written by Jaymi Naciri – To view the
original article click here