Buying Tips: How to Negotiate the Offering Price
Source:
http://boiserealestateinfo.net
Publish Date: 12/13/2008
Today – more than has been the case for consumers in many years – the real estate market offers extreme bargains. But to take full advantage while avoiding the pitfall of paying too much in an unsteady market it is important to negotiate skillfully and successfully.
Here are some tips on how to get the best deal, at the best price:
- Mortgage Pre-Qualification
The crisis in the mortgage market is pulling the strings of the housing sector, so buyers who already have mortgages lined up have the upper hand and a huge advantage for negotiating terms and price. The sellers you approach do not have to worry that if they take their house off the market for a pending sale that it might backfire if the mortgage doesn’t go through, and in exchange they may be more flexible on price or other terms.
- Make a Strong, Time-Sensitive Offer
Keep in mind that negotiations are not firm contracts and are not legally binding, and if you are waiting to hear back from an offer another buyer may come along and steal the deal out from under your nose. Put time limits on any offer you make during negotiations so that the seller must respond by a deadline to prevent the offer from expiring.
- Don’t Lose the War to Win a Skirmish
One of the most common mistakes is to get hung up on a minor sticking point in a negotiation and lose sight of the goal. Fighting with a homeowner over who pays for repairing the leaky faucet or refusing to budge when you are within half a percentage point of your price can turn into a war of egos. You might win while losing the house of your dreams. Keep things in perspective to negotiate for the big victory, not a petty prize.
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Buy Off Season
Shopping in the off season is also a great way to get a leg up on negotiations. Houses look their worst in winter; hardly anyone house hunts during the year-end season, and not selling now may mean waiting all the way until springtime. Sellers whose properties are still on the market heading into the winter season have compelling reasons to entertain any reasonable offer. The price of energy is going up, for instance, and a seller who finds a buyer before winter can save some serious cash on heating bills. Others have mortgage worries and are willing to shave off some of the asking price in exchange for a prompt sale.
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Another aspect of successful negotiations involves using a go-between. Just as the leaders of nations use ambassadors to work out the details of delicate international negotiations, hiring an experienced Realtor can often pay for itself if they are expert at representing clients through difficult negotiations. If your agent is not adept at solving problems – or you feel that they are not representing your best interests – then you should first shop for a new real estate pro before you begin a serious search for your new home. ### |
