Becoming Acquainted With the Word "Negotiation"

When it comes to buying a home, the ability and willingness to negotiate is a must for both Buyer and Seller. After all, the Seller wants a certain price for their home while the Buyer may not want to pay that price. The trick is to find the true balance so that you, as a buyer, feel good about the purchase price without leaving the seller feeling insulted or perhaps totally frustrated. In other words, in reality, you are endeavoring to create a "Win, Win" situation!

Here are some thoughts on the subject of how to buy the house you've fallen in love with.

Know Your Present Market
This is simple: Are you in a Buyer or Seller's Market? You will want to ask your Realtor® to run a Comparable so that the kind of Market can adequately be determined. In fact, your Realtor® should have a heads up response to this if he/she is doing the job of Real Estate on a full time, daily basis. Before you can make a fair offer, you must ask the question; does the market favor the buyer or seller?

Focus On Making The Offer Your Own
Remember, Sellers look at the numbers! I am a firm believer in making an effort to move the Seller away from seeing just numbers and somehow seeing a picture of who you are. Here is how I've done it with some clients in the past.

I have been known for having buyers write a private, personal note to the seller to accompany their offer. (This is not an idea that originated with me) In the note, you can talk about why you would like to buy their house, your family, including everyone that will live on the property and anything else you feel comfortable sharing. I firmly believe it should be written by hand and oh yes, have your Realtor® proof read it to make sure you are not saying, “too much” that could ultimately tip the hat in favor of the seller.

Remember Every Offer Doesn't Become A Ratified Contract First Time Around
Here is something that is absolutely true! Sometimes first offers are accepted and other times they are not! This is why we have the word, counteroffer. Always expect a counter and then you will not be surprised when one actually takes place. There is NO room for being tough guy here, simply be willing to study the counter! Your Realtor® should be able to advise you at this point in your considerations and listening to your Agent is of the utmost importance when negotiating.

Why Some Offers Never Become A Ratified Contract
Reasons abound as to why a Seller may not accept an offer. The offering price may be too low, contingencies are too long in duration, closing is stretched out too far, your offer is a cash offer and the Seller simply wants more down and maybe requires that the money will be made non-refundable after all contingencies are met. Again, the reasons can be many for an unacceptable offer. It happens!

Make Sure You Know What You Are Saying With Your Offer
Before you sign anything remotely relating to a real estate transaction, make sure you read over every detail of the agreement. If you have any questions, ask your REALTOR®. After all, real estate is our business and whether it is me or another Real Estate Agent, we are there to help you through every step of your journey.