Since negotiation is not part of our everyday purchasing habits, it's perfectly normal to feel uncomfortable with the whole idea. But when you're buying a home, the only way to get out of negotiating is to accept the sellers' asking price, which might mean paying more than the home's fair market value. To avoid that sinking feeling that you paid too much, here are some tips you might employ:
Whoever made the most recent offer is legally bound to that offer until it's either withdrawn by that party or the other party answers.
- Get all counter-offers and contingencies to the purchase offer in writing, initialed by both parties. Your real estate attorney can prove especially helpful here, making sure all amendments are legal and clear to both sides.
- EVERYTHING IS NEGOTIABLE! From the price to the closing date to the sconces on the living room walls.
- The bigger the gap between the asking price and the offering price, the more time you should allow to reach a mutually satisfactory price.
- Be aware of how long the home has been on the market. If it's been a while, say a few months, you might have a slight edge when negotiating.
- A home inspection typically isn't done until after a purchase offer is made, so be prepared to enter the negotiating phase without a crystal clear picture of what you're getting. Once you learn what the home's physical problems are, you can go from there, asking the seller to make the repairs or lower the price, or you may choose to walk away if you think the problems are too extensive--that is, IF you have included a contingency spelling this out! If the contract says you must buy the home at a particular price "as is" or with narrow limitations, you don't have much bargaining power.
- If you're not the only buyer bidding on a home, remember that the seller is looking for the best offer in terms of price, terms (who's paying for closing, repairs, etc.), and contingencies. Too many conditions and the seller may very well turn up their nose and go with a less-demanding buyer.
- Pick your battles. Know ahead of time what's really non-negotiable to you, then be willing to compromise on the lesser issues.
- Keep your feelings out of your finances. If you can only afford to pay $169,000 for a home, don't go far above that number in a panic that you might lose this house. Be willing to walk away, trusting that there are more fish in the sea.
- Keep your eye on the ball. The goal is to get your dream house for a fair price, not to send the seller down in flames by getting everything your way.
Rainer
103,359
103,359
Armando Rodriguez
Orlando Homes 4 Sale, Real Estate Broker-GRI
Real Estate Resources
Recent Posts
Home Selling
over 16 years ago
Comments(0)