Looking for Negotiating Advice?
Where, when and what you are buying has a huge impact on the way you’ll be able to negotiate. There is simply no canned answer because there are so many variables in each transaction. There are several schools of thought when it comes to negotiating. This is how I break it down.
Gather Information – First you need to gather information on the home, the sellers, and the market. Google everything. If the home is owned by a bank, the negotiation will revolve around price. If you have a seller who has clearly loved their home and lived there for a long time, price may not be the only factor they consider. It is a good idea to find out all that you can about the reason the seller is selling.
Checking Comparable Sales – Evaluating the recent sales nearby and comparing the home to these past sales is one way to think about pricing. It’s also important to evaluate the current inventory how long it takes for properties to sell in order to determine whether you are in a buyer’s, seller’s or balanced market. This data may also help you understand what the seller and listing agent were thinking when they priced the home.
Understand the Competition – Multiple Offers doesn’t always mean the same thing. Some local neighborhoods are not just in a traditional seller’s market, they are in extreme seller markets. In order to win, buyers must remove protections that may make some buyers uneasy. It’s crucial to understand the competition so you know what to expect.
Communicate and Ask Questions – Do you know who already did their research and has already spoken with the seller? The listing agent. Ask the listing agent questions. So what if he or she won’t answer all of them. Give it a go. It’s amazing what you can learn if you ask. And what you won’t if you don’t.
Developing a Strategy – Once you have a good idea what you think the final price for the home should be, it’s important to develop a pricing strategy and understand the likely responses from the seller. For example, if you decide to offer a price close to the listing price, you will get a more favorable response. If you decide to submit a low offer, be prepared for a more negative response or a rejection. Be ready to counter or accept their response. Understand that your strategic choices have consequences. Remember that for some properties, the negotiation continues with the home inspection, so fighting hard up front may use up your good will on the next round.
If you are looking for an agent to guide you through the home buying process, connect you with top notch mortgage professionals for financing advice, help you evaluate and select the best property for you, and skillfully negotiate your offer through acceptance and settlement, give me a call to Get Started.