If you want more tips on how to negotiate a price on a home in Bonita Springs, contact the Kris Asquith Paradise Realty Team at 239-300-1427. Search homes for sale in Bonita Springs at movewithkris.com.
Are you ready to buy a new house? Are you worried that you won't be able to get the best deal? It often comes down to simple negotiating skills. Negotiating may seem intimidating, but you don’t have to fear it. You can learn how to negotiate with the seller like a pro and save thousands of dollars on your closing price!
The good news is that there are experienced real estate agents in Bonita Springs that will help you learn how to negotiate a price on a home. The ball is in your court when it comes to negotiating the price for your new home when you have a professional real estate agent on your side. If you can find a motivated seller, you can score a great deal. However, sellers are not going to accept just any offer that you throw at them, and there is a fine art to negotiation. Read on to learn 5 great tips that will teach you how to negotiate a price on a home in Bonita Springs
1) Decide what kind of deal you need to be satisfied
Before you start negotiating, you have to decide what kind of deal with which you will be happy. Everyone wants a great deal, but the greater the deal, the longer it’s probably going to take you to find it. How soon do you want to be in your new house? What if you fell in love with a house and felt like you had to have it, but you couldn’t get a big discount on the price? You need to put your priorities in order and decide what is right for you before you begin your search.
2) Do your market research
You need to understand the fair market value of the property in Bonita Springs, and this involves doing your homework. If you don't know how much a home is worth, you won’t know how to negotiate a price. Don't just go and blindly offer 10% or 15% off the asking price, because the house could originally be overpriced. Sellers are notoriously nostalgic about their homes and often think that their house is worth more than it truly is. Many people are also in denial about the true value of their homes, because selling them at their fair price would mean that they are losing money.
You can work with a Bonita Springs real estate agent to help you make offers on the property in which you are interested. This real estate agent should be able to tell you what the house is worth based on what comparable houses have sold for in the area. You can also do your own research. You can check out the list to sale ratio of similar properties in the area. This list tells you what the house was originally listed for and what it sold for. You can see the momentum of the market and if people are getting great deals in your area.
3) Don’t throw a lowball
If you throw a lowball offer, you may insult the seller so much that he or she refuses to counter negotiate with you. Once you have established what you believe the fair value of the house is, you could make an offer as low as 20% below that number. Expect the seller to come back with a counter offer. You should have a number in your head that is the highest price you are willing to pay for the house. Then you can evaluate the direction your negotiation is heading in.
4) Negotiate on the sales contract
Are you at an impasse on the price? A sales contract is a great place to negotiate. Rather than negotiating on price, you negotiate to get clauses called contingencies put into your sales contract that work in your favor.
An inspection contingency will let you out of the contract if the inspection reveals something seriously wrong with the home or that it needs a lot of repairs. If this is the case, but you don’t want to give up on the home, you can try to have the seller agree to repair the house. Alternatively, you can also have the seller lower the price by the costs of any repairs needed. An inspection contingency will make you feel safer knowing that you will not have an unpleasant and pricey surprise in store.
An appraisal contingency ensures that if the house is appraised at less than the sale value, and you cannot get a mortgage, you are let out of the contract. The mortgage company won't give you a loan if the house appraises for less than the sale price. If the appraisal comes back lower than expected, you can always ask for the seller to make up the difference. There is nothing else you can do, because if you cannot get financing, you can’t buy a home. The seller is often understanding and willing to make concessions in these situations.
There are a few other things that you can negotiate on your contract. In today's housing market, it is becoming increasingly common for sellers to agree to pay the closing costs. They may also agree to be amenable to pay the first year of home association dues, or leave removable fixtures inside the house.
5) Be prepared to walk away
You can’t expect to get the deal you want every time. You aren’t the only variable in the equation. The final price has to work for both the buyer and the seller. If you can’t get the offer you want, don’t look at it as a failure. Look at it as a learning experience. Walk away and try again.
Hopefully you’ve learned the basics of how to negotiate a price on your potential new home in Bonita Springs. It takes perseverance, persistence, a great real estate agent, and a little luck. Basic negotiating skills can save you thousands of dollars on your dream home in Bonita Springs.
If you are looking to sell your home in Bonita Springs, visit movewithkris.com to find out what your home is worth.