Home Buying Negotiating Tips

Whether you are a seasoned home buyer or this is your first time search, we believe these Home Buying Negotiating Tips will serve you well (along with a good Realtor).   

When it comes to buying a home, the ability and willingness to negotiate is a must for both the buyer and seller. In general, sellers ask for more than they are actually willing to accept and buyers offer less than they are willing to pay. The trick is to find the perfect balance so that you, as a buyer, feel good about the purchase price without leaving the seller feeling insulted. 

Know Your Market:  Real estate is a business that either favors the buyer or seller, hence the terms buyer's market and seller's market. For example, in the Clarksville TN Real Estate market, we are in what one would coin a Buyer's Market. When negotiating a purchase price, it's important to know which of the two you are in. As the buyer, you will have the best chance at a successful negotiation if you research the price of other comparable homes in the area before making an offer.

Make It Personal:  

When you make an offer, the seller will see nothing more than a piece of paper with some numbers on it that represent the price you are willing to pay. If you really want the seller to take your offer to heart, let them know why you want to buy the home. You can do this by preparing a handwritten letter expressing your interest and the reasons you fell in love with their house. If you have a family, tell them about everyone who will be living in the home. Let them get to know you and allow them to picture the happiness that you can bring to their house. Believe it or not, some sellers actually look at the process like finding a good home for a lost puppy. They want quality people to buy their home, so do your best to show them that you are sincere.  Obviously, this can work against you in certain circumstances, but in a Seller's Market this is an idea that has actually worked successfully for some of our past clients who found themselves in a multiple offer situation.

Nobody Likes Rejection:  Not every offer is accepted, so don't be disheartened if your first offer isn't a winner. In some cases, the seller will make a counteroffer for your consideration. Have you ever heard the old saying, "never take the first offer?" The same is true in real estate, and almost every seller knows it. Your first offer is likely to be less than you are actually willing to pay, which leaves you some bargaining room.  This is not to say you should low-ball each home you are interested in. Many times low-ball offers will kill the deal before negotiations can start as many sellers see such tactics as a sign of disrespect.

Why Your Offer May Not Be Accepted:  

There are a number of reasons why a seller may choose to reject an offer, including a feeling that the offer was just too low (aka low-balling), the house is newly listed on the market or another offer may be higher than the one you created. In some cases, sellers may also reject an offer that includes owner financing or other requests that are impossible to meet. One example may be an offer that requires the house be available within a certain amount of time. Most contracts require that the seller move out within 30 days, but anything less would require negotiation.

Read The Fine Print:  Every step of the process your Realtor will be there to offer sage advice based upon experience and comparable market analysis to ensure that you are putting your best foot forward and enhancing your chances of negotiating the best deal on your Family's dream home.

Pam and I hope that you will consider us in assisting you in your Clarksville TN Home Search.

Before you sign anything relating to a real estate transaction, make sure that you read over every detail of the agreement. If you have any questions, ask your Realtor.  After all, real estate is their business and they are there to help you through every step.