One of most stressful
times in the house hunting process is when you are preparing your offer
for a property. I have gone through many negotiations and try
to help my buyer clients to prepare the best offer that they can give.
While we all want to feel we have
gotten a bargain the truth of the matter is no one is going to give
away their property. The sellers had at least one, if not
more, real estate professionals helping them to price the house to
sell. While some sellers are still listing their houses above
market value, most of them are now realizing that they need to price
the property realistically. What you, as the buyer, need is a
real estate professional to help you determine the market value of a
house before you make your offer so that you can make an offer that is
attractive enough for the seller to respond to but does not have you
paying too much for the property.
Some buyers want to come in with an offer that takes the asking price
and subtracts all the repairs that they feel the property needs and
even some of the improvements they want to make for their own comfort.
While some owners are not pricing the house with repairs in
mind, most are advised by their agents to either fix major issues or
price the house at less than market value for the property if it was in
perfect condition. Again working with a buyer's agent can help you to
determine whether the house was priced to sell in it's current
condition or if the owner's are hoping someone won't notice the
problems and offer them more than the house is worth.
Many buyers don't realize that their first offer sets the tone for the
rest of the negotiations. You need to put your best foot
forward and present the best terms you can in your offer. You
should not make your first offer your highest and best, unless your
agent warns you that the property is really active and will sell
quickly at the listed price. On the other hand you do not
want to make your offer so low as to insult a seller who has
realistically priced their property. Again you need to depend
on your agent to advise you on the situation.
The bad news is that I have seen people who really wanted a house lose
it to another buyer for a few thousand dollars. In terms of a
30 year mortgage at 6.5% an extra thousand in your offer adds about
$6.50 to your monthly payment. It is rarely worth this small
amount to miss out on a house that you want.
The bottom line is that you need to have a buyer's agent who is
experienced in negotiations and knows the current market on your side.
How else will you be able to avoid costly mistakes?
The key to negotiating successfully is to have the best
information and making an informed decision.
Good luck as you search for your new home. If you are looking
in the Great Hudson Valley of NY I would love to be your buyer's agent.
If you are looking elsewhere I can help you find an agent who
will help you where you want to be. I'm just call or email
away.
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