How to Negotiate Like a Pro
How to Negotiate Like a Pro
Right now, desirable properties are moving quickly. Frequently you hear stories of a house that lists and immediately has multiple cash offers for more than the asking price. Does this mean that homeowners can’t negotiate the price of the home they’re considering? If you fall in love with a home, do you have to move fast or risk losing it?
How do you find the line between paying too much and alienating the seller with a low offer? In many situations, the buyer can negotiate a significant sum off the asking price or request seller concessions that reduce the buyer’s closing costs. Here are some of the areas you can negotiate to find the best deal.
Negotiate the Price
The seller wants the most they can get, you want to save as much as you can. Usually the result sits somewhere in the middle. Sellers appreciate when buyers are up front with their offers.
Negotiate doesn’t mean haggle. There’s time between when the initial contract is signed and you close on your home. While communicating with the seller, be careful to communicate respect, even when emotions run high.
Evaluate what the home is worth to you. Research what similar homes are selling for and make your first offer one you think is conservative but fair.
Find out how long a home has been on the market. Terms like “motivated seller” and “bring offers” mean you can start lower than you would on a home that just listed.
Negotiate Closing Costs
If you benefit from paying less out-of-pocket at closing, consider offering close to asking price on the house but requesting the seller pay a portion of your closing costs. Sellers can be open to this option as they don’t have to risk lowering the selling price for a deal that doesn’t go through, and can move forward without drafting new paperwork.
Negotiate After Inspection
Prospective buyers sometimes think once they’ve signed a contract they’re obligated to stick with the original terms. Once you’ve had your home inspected you’re likely to find some issues in need of repair. Choose the repairs most important to you and ask the seller to have them fixed.
If the seller doesn’t have the time or ability to complete repairs before closing, ask for cash back at closing or money off the price of the home. Sometimes sellers will gladly credit you some money to avoid dealing with contractors.
Negotiate a Quick Closing
Have all your financial ducks in a row so you are ready to close quickly. Buyers find it attractive when a seller is pre-qualified and ready to close. If you find out your seller has already bought another home, moved to another state, is selling because of a divorce, or has any other time-sensitive motivation, a quick closing may motivate them to accept a lower price.
The team at Hire Realty has expert negotiators to get you the best deal. Contact our team today to see homes near you.
Sources:
https://www.credit.com/loans/mortgage-questions/how-to-negotiate-best-price-when-buying-home-purchase-offers/
https://www.entrepreneur.com/article/253732
https://www.marketconnectrealty.com/blog/top-4-reasons-hire-realtor/
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