Of course, you will have a budget in mind for what you want to purchase a home for, but you are at the mercy of the real estate market and if happens to be a seller’s market, you want to make sure you’re not overpaying for a home.
This leads to the task of negotiating a price.
Basically, you put an offer in on a home and if the seller doesn’t immediately accept, you will then go back and forth and negotiate until both parties agree on a price.
Negotiating in the real estate market can be tricky.
There are particular ways to handle the situation appropriately so that you get a home for the price you want and the seller is satisfied with what they receive monetarily.
There are three main components that will affect a negotiation strategy: the market at the time of purchase, seller’s requirements, and the condition of the home (the inspection).
You will want to do your homework and consult with your agent ahead of time about the area you’re looking to purchase in, recent sales, and the most successful of negotiation strategies.
Straight away, negotiations are easier in a buyer’s market where there are more houses available than there are buyer’s looking to purchase. A seller doesn’t have the advantage of being one of a handful of houses for sale with tons of potential buyers.
If it is a buyer’s market, don’t be afraid to negotiate even the littlest details.
If you want the entertainment center or the gas grill, go ahead and ask for them. A seller is more likely to work with you when their option of buyers is limited.
In a seller’s market, the seller won’t counter if you make that bid of 10% less than the sale price, they’ll just go with the other 15 buyers looking to purchase the home. Your best bet for negotiating in a seller’s market is to not, offer a clean bid instead.
Do the math. You want to check the comparable sold homes in the area so you have a better outlook on fair market value.
Don’t forget to crunch numbers. This is where your agent comes into play at large.
They have a good sense of what offer will be most suitable to the seller.
If a counteroffer is made, act quickly. Buyers who wait too long to respond will almost always lose the home because the seller doesn’t have the patience to wait (unless it is slim picking for buyers).
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