5 negotiating tips for home buyers
Posted 11-14-2012 at 08:16 AM by Paul Howard
Negotiating for a favorable contract sales price must be done from a position of strength. These tips will help buyers.
1. Homes that are comparable to the one you are interested in are the first thing you should look at. Remember, though, that determining comparability can be complicated and require 'adjustments' of various amounts - since no two homes are exactly the same.
2. When you look at the home with your agent one thing you should be doing is paying close attention to condition.
Whether or not permits were obtained for alterations or additions should also be determined. A common area that is renovated without permits is the basement. Your agent may well be able to determine that just by looking and it is better to know prior to going into contract than after inspections - or not finding out at all.
3. Having some information about the seller is useful. If they have moved or are in the process of moving they will be more motivated than someone that hasn’t found a place to go yet. Knowing the price they paid for the home and often their mortgage amount can often be determined from public records.
Additional information might be obtainable by googling the seller’s name or the property address.
The more you know about the seller - the better.
4.If you have found another home that will meet your needs you might consider placing non-binding offers on both. It is common for sellers to consider multiple offers - buyers can also place offers on multiple homes. Being willing and able to walk away from an offer is perhaps the most powerful means of gaining a negotiating advantage.
5. Is your agent ready and willing to help you walk away from a deal that isn’t to your advantage? You can tell this by their actions and motivation. If the seller is also represented by the company that is representing you a conflict exists and you will not get the best representation.
The best way to ensure that this does not happen is to use an agent that is a member of the National Association of Exclusive Buyer Agents ( Exclusive Buyers Agents | First Time Home Buyers Agents | Real Estate Buyers Agents ). Being a "Realtor" is not enough.
- Prior sales of comparable homes and asking prices of homes
still on the market and homes that failed to sell. - Condition of the home.
- Information about the seller.
- Availability of acceptable back up options.
- Willingness of your agent to let the deal go and move on -if that is in your interest.
1. Homes that are comparable to the one you are interested in are the first thing you should look at. Remember, though, that determining comparability can be complicated and require 'adjustments' of various amounts - since no two homes are exactly the same.
2. When you look at the home with your agent one thing you should be doing is paying close attention to condition.
Whether or not permits were obtained for alterations or additions should also be determined. A common area that is renovated without permits is the basement. Your agent may well be able to determine that just by looking and it is better to know prior to going into contract than after inspections - or not finding out at all.
3. Having some information about the seller is useful. If they have moved or are in the process of moving they will be more motivated than someone that hasn’t found a place to go yet. Knowing the price they paid for the home and often their mortgage amount can often be determined from public records.
Additional information might be obtainable by googling the seller’s name or the property address.
The more you know about the seller - the better.
4.If you have found another home that will meet your needs you might consider placing non-binding offers on both. It is common for sellers to consider multiple offers - buyers can also place offers on multiple homes. Being willing and able to walk away from an offer is perhaps the most powerful means of gaining a negotiating advantage.
5. Is your agent ready and willing to help you walk away from a deal that isn’t to your advantage? You can tell this by their actions and motivation. If the seller is also represented by the company that is representing you a conflict exists and you will not get the best representation.
The best way to ensure that this does not happen is to use an agent that is a member of the National Association of Exclusive Buyer Agents ( Exclusive Buyers Agents | First Time Home Buyers Agents | Real Estate Buyers Agents ). Being a "Realtor" is not enough.
Total Comments 0
