Getting the house you want at the price you want can be tricky â€“ even in a buyerâ€™s market. Sometimes a home seller just isnâ€™t willing to budge on price. Donâ€™t despair! There are other ways to sweeten the deal and drive it to close in a buyerâ€™s market. Here are seven tips on how to negotiate with a home seller.
Learn as much as you can about the motivations and situation of the home sellers. For instance, if theyâ€™re living in the house and they need flexibility around the closing date, you could offer to be flexible on closing if they move on terms. In the case of estate properties, take some time to learn about the heirs - where they live, what kinds of houses they live in and whether or not they are in legal or financial trouble. It sounds creepy, but most of this information is available for free online once you have the names of the home sellers. You can also research obits and marriage documents that are in the public domain. The more you know, the more leverage you have when it comes time to negotiate.
Work independently or with your agent to research comparable sales in the immediate area of the home, then make an offer at least 10 percent below what the market says itâ€™s worth. Dig into the details to figure out how the home you want to buy stacks up against comps, and look for ways to communicate the legitimacy of your offer or requests by backing it up with data. For instance, if all comparable sales have a pool, waterfront property or updated kitchens and the house that you want doesnâ€™t, point that out. Use this data to justify your offer or other requests to create value if they wonâ€™t budge on price.
If there are things that you want or need to feel comfortable with the deal, ask for them. The home seller can always refuse, but if you donâ€™t ask, you donâ€™t know. If youâ€™ve created leverage by learning about the property and the sellerâ€™s situation, you can use this information to ask for things, such as repair of items found during the inspection period or appliances that werenâ€™t listed on the original contract for the house. Donâ€™t make assumptions. Even if your realtor balks at the idea, always ask.
The faster a deal gets done, the more quickly the home seller can cash out their asset and move on with life. Homes that remain on the market or unsold for extended periods of time become costly to sellers (especially if theyâ€™re unoccupied) and start to decline in condition. Offering a quick close builds confidence with the seller as it means that thereâ€™s less time for things to go sour with the deal. If youâ€™re situation allows for this negotiation tactic, you might be able to either lower your price or get other benefits in exchange.
If you want to make a reasonable but low offer on a property, consider the pros and cons of presenting an â€œas-is with right to inspect â€œ offer. The upside is that you can walk away from the deal if the inspection frightens you. The downside is that what you see is what you get, leaky plumbing, termites, mold and all. If you really want a property and are willing to take it as-is, but arenâ€™t really comfortable with the sellerâ€™s floor price, ask for the furniture or other non-fixed assets that make the deal more palatable such as a boat or fitness equipment.
If youâ€™re apart on price for the home itself, one way to get around the cash crunch and get a deal done is to meet the home seller on price, but ask them to cover all or part of the buyerâ€™s closing costs. Some home sellers might balk, but if theyâ€™re able to do this and want to finish the deal with a sale at a particular price point, this technique can work.
Buying a home can be an intensely emotional experience, but at the end of the day it is really just a business transaction. This means you canâ€™t get attached, and you have to be willing to walk away if youâ€™re unable to negotiate with a home seller or if the seller becomes unreasonable. If the sellerâ€™s agent senses desperation or over-eagerness on your part, they might interpret that as a signal that they have the upper hand. Silence can be your friend. Hold your cards close and always be willing to walk away.http://www.homesinbloomingtonil.com/miarticles/articleid/43/