So are you ready to buy a house? Here in the Finger Lakes area it has never been a better time to buy. The inventory of houses for sale is high, prices are competitive and there are great interest rates.
So in this buyer's market how do you go about negotiating the best price for the house that you want?
My last blog post touched on the first negotiating scenario http://www.yourauburnrealtor.com/2009/04/buyers-tipss-how-to-negotiate-best.html
Sellers want to get the highest price possible for their property and the buyer wants to buy the property for the lowest possible price. Obviously this puts both parties at an impasse. Right now in Auburn New York home buyer's have the advantage as it is a buyer's market. There is a lot of inventory on the market and properties are taking longer to sell.
When I work as a Buyer's Agent I have different negotiating strategies based on each particular property. Lets look at a couple more scenario's.
Scenario 1: The subject property has been on the market for 10 months the current asking price is $129,900.00. The original list price was $139,900. The buyer likes the property and is ready to place a bid.
After doing a comparative market analysis I am coming out with a value of $119,000.00. After speaking to the seller's agent I learn that the seller is relocating and needs to sell the property.
Based on all of this information and the fact that it is a buyer's market my recommendation would be to put in an offer for $109,900.00. It is $20,000 below the asking price but the house is overpriced to begin with and we now know the seller needs to sell asap.
Most Likely the seller will counter offer at $124,900, I would then bring up the market analysis putting the value at $119,000.00 and advise my clients to counter at $115,000.00. We will probably come to terms between $115,000 and $120,000 after all of the countering has been finalized. The bottom line is if that this seller really needs to sell they are going to make a deal with the buyer.
Scenario 2: The subject property has just came on the market at $124,900.00. The assessed value of the property is $139,900 and is in a very desirable location. After completing a market analysis I am coming out with a value of $130,000.00. The agent has said that there has been a lot of interest and many showings since she put it on the market.
In this situation I would recommend that if my client really want the house they offer as close to asking price as they can. I would have them put in and offer of $119,900.00 the seller still may counter closer to their asking price. We know that even if we pay full price for the property we are still getting it for less than market value and it is in a desirable location. Stalling and offering to low on a property like this will result in someone else winning the bid.
My next post will feature advice on how to bid on foreclosures and HUD homes.
If you need immediate real estate advice or have any questions please call me anytime at 315-515-8348.
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