When you’re in the process of buying or selling a home, you should be familiar with the negotiation process. Knowing how and when to make a move can be the difference between finding your dream home or selling your house.
Don’t Base Your Offer on the Outcome of an Inspection
Asking for a credit after an inspection in which major flaws were revealed is an intelligent move. However, in this tight market, you may not receive it. It’s highly unlikely that a seller will make significant repairs to the home, and you’re better off asking for a credit at the time of closing so that you are able to hire a contractor that you trust to make the repairs you prefer.
Be Prepared to Move Fast if You See a Home You Like
“When properties go on the market, they go very quickly,” Related Reality broker Sheila Dantzler says in a US News & World Report: Money article by Teresa Mears. If you’re in a competitive market, make your first offer your best offer, advises another contributor Brendon DeSimone, a real estate broker in New York and author of “Next Generation Real Estate: New Rules for Smarter Home Buying & Faster Selling.” Making the first move can ultimately land you your dream home, but don’t forget to do your homework.
Finances Should be in Order
Having your finances in order will eliminate some of the stress involved in the home buying process. Your offer is far less persuasive if it doesn’t include a mortgage preapproval. Buyers need to be prepared because this process can take several months.
Focus on the Value of the Home, Not the List Price
Check out surrounding homes for recent sales. This will give you and your agent enough information and ammunition to submit a fair offer. If the home is priced below market value, you’re unlikely to get it for less.
Hold Off on Offers Until a Certain Date
Schedule an open house for your home shortly after placing it on the market but refuse to discuss offers until afterwards. Potential buyers are expecting to be in competition and may place higher offers as a result. Even if you only get one offer, the buyer won’t know that.
Crunch the Numbers
Before you finalize your decision about how much to offer, have your mortgage broker run a monthly payment on your offer price and estimate your property taxes and insurance. This final check will add up all monthly and annual obligations so you won’t be in for a big surprise after you buy.
Reject the Offer, and Invite the Buyer to Resubmit
Rejecting the buyer’s offer and not countering will push the buyer if they’re really interested. This strategy sends a stronger signal that you know your property is worth what you’re asking for it. If the buyer resubmits, they’ll have to with a higher offer. If you don’t counter, this also means you’re not locked into a negotiation with a particular buyer and can accept a higher offer if it comes around.
Now that you’ve covered these useful tips, let us step in and assist you with buying or selling your home. Contact Melissa Clements today, and let her address all of your real estate needs.