The temptation to low ball a house is just that, a huge temptation. In today’s market understand what the market means. There is a National market, Regional market, State markets, local markets, Area Markets, Community markets, and finally Micro/Neighborhood markets. While any buyer wants to get a great deal on a house they can ruin it by trying to get to good of a deal. Sellers who get mad are really hard to make a good deal with. So here are a couple of things to keep in mind.
These are the other people out there looking too. Just because the house has been sitting for a while does not mean the seller is going to roll over and give it to you. Be smart, ask for advice from your agent. They can show you what is going on in the area and give a good idea of what may work.
MAKE IT INTERESTING
How do you do that? Buyers who remember that you get more by being thoughtful and nice may be surprised how softening up a seller can work. People like to business with someone they like.
Have your agent present a letter to the seller with your offer. Tell the seller that you like their home and what you like about it, and that you imagine that they have enjoyed it as much as you hope to in the future. It looks like just the place for us (your family your pets etc.)
GIVE A LITTLE… GET MORE!
With the right negotiations you can give a little and get a lot. If you ask for seller concessions like a deep discount on price or repair costs or 1-2 years of prepay Association Dues, then try to double dip by also asking the Seller to pay your closing costs or too many extras, you will probably lose the deal altogether. The cut in the seller’s price may be too deep to provide anything else. If you force a seller into a corner, they may not be willing to take the loss. In fact it is the rare seller that is not just plain insulted and will kill the deal very angrily. A reasonable offer can expect a reasonable counter-offer. An unreasonable offer is usually met with a full price counter if they will counter at all. Remember, it’s the Buyer who sets the tone for negotiations. With our consultation we will make yours count!
BE SMART WITH WHAT YOU NEED TO GET THE HOUSE
Try to figure out what you really want and what you really need to buy your next home. Most people today need help with closing costs. What this is are your mortgage costs and pre-paids. Pre-paids are property tax escrows and also hazard insurance. Your mortgage may have discount points and origination fees. Many times the seller is okay with paying for this, it hurts but they will do that.
HAVE A HEALTHY CASH FLOW?
Or, if you have a healthy cash flow and you are looking for a discount, then a 3 to 5% discount may be in line in the current market. A lot depends on the house, how long it has been on the market and what kind of condition it is in. I have observed several buyers lose out on a good buy by getting a little greedy. Usually Buyers get frustrated when this happens. So asking for a huge discount AND closing costs may poison the deal on the home of your dreams.