For the last few years, the real estate industry has been a buyer's market. There was an overflow of homes on the market, and selling prices have been dropping since the economy's collapse in 2008. But that's all started to change in recent months.
Across the country, in both metropolitan cities and rural communities, there's a reduction of inventory, and prices are on the rise. In other words, there are fewer homes for sale, and the ones that are on the market are being listed at higher prices. So, how can you get the best deal on a home without overpaying? Here are some tips that can help you fine-tune your negotiation skills:
The negotiation begins when you make your offer.
Nicolas Puygrenier Ç€ Licensed Real Estate Broker
Mona Lisa Real Estate Group LLC
419 Lafayette Street, New York, NY 10003
Telephone: 917 499 1917
Thank goodness you are in Brooklyn and as such, I think you can feel free to consider the response from the nowhere nearby "Broker" that said "Just make an offer that gives you a little "wiggle room" and let the negotiations begin." - Just pretend you didn't hear that! Gasp!
Clearly you are working alone or perhaps with your tailor, but what I didn't think was as clear was that you were the purchaser in this negotiation and not the ever so skilled FSBO! You haven't jumped in and said that you are not the seller, but just for grins - lets say you are. You already negotiated the asking price when you decided to go it alone without a licensed real estate agent! (As always, if I could have said that kinder, I would have!) But FSBO's received on average 20% lower offers then when represented by an agent! National Association of Realtors statistic - I'm not making that up! But then you saved that 6% by going it alone - so there!
Now Tasha, if you are the buyer in this scenario...take the above tip and submit away! And Tasha -if you are out there buying a home on your own - in all fairness I can't give you any more props than I gave the FSBO. It's not monopoly people! It's the largest contractual deal you will make in your life! I hope thinking of it from that perspective, will you in making a wise decision on whether or not to go it alone!
I do work in Brooklyn and Manhattan; should you need any further advice or assistance, please feel free to contact me!
Best of Luck,
It is also a good idea to know whether or not an offer is already on the table. If there is another offer on the table, and the home is really priced to sell--you may only have one shot at giving your offer. We are seeing this here on Long Island with really well priced properties in good condition.
I hope this answered your question! If you have any further questions, please feel free to contact me by the ways below.
Wishing you all the best,
De Vonte Williamson , LSA
Proudly Serving Long Island
Coldwell Banker Residential
If you know the market, you will know if the asking price is reasonable.
And you will know how strong the demand is and could become.
It is useful for you to find out if there have been any offers already.
And if any offers have been raised and are still outstanding.
You will then know the price change history from the beginning.
With this knowledge your first offer could be above, at, or below the ask.
The purpose of your offer is to get acceptance or a counter-offer.
If you do not get a response, you will have to raise your offer.
When you raise your offer, you should have a good argument for it.
Finally, pay attention to the timing.
When the season ends, everyone re-evaluates the prices.
You should use a good broker to represent you.
It does not cost you anything; commissions are paid by the seller.
It is a buyers market and you should be negotiating price with your first offer
You can not submit a price and turn around to the seller or the seller's broker and say I would like to submit a lower offer. Tasha, what I am getting from your question, is that you are ready to shop for a home and you are looking for some professional guidance and advice.
If you are looking in Greenpoint or Williamsburg, there will be no negotiations. As soon as properties pop up, they sell.
If you have further questions, please feel free to give me a call at 917-662-1846
Realtor, CBR, SFR
this is such a delicate question, and really depends on the current market, and also the micro market that you are looking for property in.
In my opinion it depends on the parties involved in the sale as well as the particular property.(how long has it been on the market, have they recently had a price reduction, how agressive/honest is the broker representing the property, etc.)
It's a wonderful question, and in my opinion this is where buyer's broker's earn their keep, especially in a more active market.
What neighborhood are you looking in?
Your question is a little unclear when you ask "when do I negotiate the asking price?" I am assuming from your having posted in "Homebuying in New York" that you are a buyer. I am not clear if you have found a property and are about to make an offer, or if you are asking well in advance of locating a property.
What is very critical is that you work with a skilled, experienced agent. If you have not found the property yet, we can take you through the steps. If you have found a property, you absolutely need an expert negotiator on your side. There is also much more to an offer than a number.
Halstead Property, LLC
When you make the initial OFFER, and when you have completed the INSPECTIONS and before you release your CONTINGENCIES.
Make sure that your initial OFFER allows for the MARKET VALUE of the property based on the CMA your Agent does for you. Do not rely on the LISTING PRICE as being realistic.