The House Hunt: Negotiations 101

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Negotiating the potential purchase of a home is often frustrating when emotions are running high and time is of the essence. Just like any negotiation, both sides should be willing to cooperate and compromise in order to reach an agreement. Fortunately, we have knowledgeable Realtors to guide buyers every step of the way. Your real estate agent manage negotiations for you based on the market conditions, seller’s requirements, and property itself. Here are some tips on how to negotiate like a pro.

  • Fair price: Research how long the house has been on the market and the selling prices of similar properties in the neighborhood. If you enter the negotiation armed with knowledge and facts to back your offer, it may be easier for the seller to agree to a lower amount than if you proposed one with no justification behind it.
  • Seller’s motivation: Learn as much as you can about the motivations and current situation of the home sellers. The more you know about the seller, the more you can tailor your offer. Different scenarios will increase your bargaining power when it involves the seller having to move versus just testing the market.
  • React quickly: Respond to counteroffers as quickly as possible to avoid leaving space open for another buyer to step in and create a bidding war, or for the seller to perceive that other serious buyers are interested. Also setting tight deadlines for the expiration of your proposal can avoid inviting a competing offer as well.
  • Buyer’s budget: Just like the seller doesn’t reveal motives for listing the house, a buyer shouldn’t disclose the maximum amount they are willing to pay for the property. If the seller senses you can afford more than was presented, they may be less willing to give in on price.
  • Stuck on price: If all negotiating tactics fail to lower the price, there are other terms that the seller can cover such as including closing costs, repairs to the home, and even Realtor fees. While it may not be actual money off the list price, you’re still saving on the complete purchase.

Remember, if you don’t want to get your hands dirty, your real estate professional can manage the whole negotiations process for you.

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