The Real Estate Blog

If you’re working with an expert this is where they may be most valuable! Depending on the home you like there may be many different angels to address when you begin negotiations.

Is the listing new to the market?

If so you may have a difficult time getting the price to come down. Typically speaking the first 3 weeks of a new listing is the busiest. If you like the house get it locked up with a strong offer. Don't waste time thinking too much as it could potentially lead to more buyers placing offers on the same home, and you may find yourself competing with other buyers. This would basically ensure you are’t getting the best deal. In closing “Strike while the iron is hot”! You will have time to assess the home further during your conditional period.

Does the home need improvements?

If so you may have a stronger position when you begin negotiations. Make an itemized list of things that need to be improved or replaced in the home. Estimate appropriately, inflating your estimations may lead to a stalemate during negotiations. If you are overcompensating the repair value the seller may simply reject your offer.

Has the home been on the market for several months?

Why? There are many factors that could leave a home sitting on the market. Remember only about 50% of homes that are listed actually end up selling. The home could be overpriced, need repairs, have an undesirable location, & unrealistic sellers can also kill the sale of their own house! Each home must be approached differently in order to have a successful deal come together.

Are you competing against other buyers?

Nothing is quite as unnerving as competing to buy your ideal home. Many typical negotiating tactics will not work in this situation.  You may have to pay more than you want, you may have to overlook certain factors about the home itself when establishing a price, and ultimately you may have the feeling of “losing you dream home” if the sellers decides to work with someone else's offer (the worst!). In this situation you are playing 1 strike baseball. You get one chance to make the best impression. Make sure you are coming to the table with your absolute best possible offer! You likely won’t get the chance to improve upon it.  Leave no room for regret!

What is important when negotiating the purchase of a home? 

1. Price – Are you coming in lower than asking? The seller will expect a good explanation! What else are you offering in return for a lower purchase price? A better closing date, minimal conditions? Or is the price simply higher than the market indicates? There are many reasons you might make a low offer, but only so many of those reasons are going to hold up during negotiations. Be prepared if you want a good deal!

2. Closing Date – Some sellers may have a particular date when they would like to move. They may already have a new home lined up, they may want to move immediately, or they may want to wait several months depending on weather, kids schooling etc...Are you prepared to give it to them? You may or may not be flexible yourself with the closing date. Just make sure if you want your date there is something in it for the sellers.

3. Conditions – Buyers use conditions to ensure they are making the right purchase decision. Whether its inspection, sale of existing home, financing, or a host of other conditions. You are ultimately satisfying yourself that this is the home for you. You may have several or no conditions depending on your strength as a buyer. The amount of conditions you use will relate to the sellers flexibility in other areas of the offer

There is nothing more enticing to a seller than a CASH Offer. No more showings, no inspection headaches, and a well-qualified buyer. If you have the ability to make a cash offer it can help tremendously during negotiations.

Ultimately a good negotiation will leave all sides feeling okay. No one to happy and no one upset.