You’ve finally found a home that ticks all the boxes in your checklist, but it comes with a hefty price tag. Don’t let that discourage you as not all homes sell for their asking price. You just need to negotiate a better price. Here are some tips to keep in mind as you prepare to negotiate an offer.
Keep an eye on local real estate
In order to negotiate for a better price, you’ll need to maintain surveillance of the property market. Do research on comparable homes in the area – how they were priced, and how much they actually sold for.
The disparity will help you determine how high or low your offer can go. This will also help you find out if the home is overpriced.
Go through the numbers
You’ll need to work with your mortgage broker to do a final check of monthly and annual expenses you’ll have to shoulder if the seller accepts your price offer. Do an estimate of your insurance and property taxes.
This will also help you see how much of an impact a few hundreds or thousands in price difference will have on your on-going payments.
Play down your interest in the home
Gushing about the home will send the seller the message that you’re willing to pay more for it. This gives them the upper hand in negotiations, especially if there are other bidders. You’ll need to keep a level head throughout the negotiation process, no matter how smitten you are by the property.
Find out why the homeowner is selling
You’ll need to ask the seller why they put the home in the market.
You can also talk to the neighbors if the seller won’t reveal anything. If it has to do with something urgent and time-bound, then you might be in a better position to negotiate.
- Does the home owner want to buy a new home but is caught in the chain?
- Do they have to relocate because of work?
- Are they getting divorced?
And so on. You may course these questions through your agent, who’ll know how and when to raise them.
Respond to counteroffers quickly
Responding to counteroffers late could give other buyers the opportunity to come in and start a bidding war that will ultimately benefit the seller, and not you. It might also make the seller think that you’re not all that serious about purchasing the home.
Decide right away if the seller’s counteroffer is acceptable, or if you want to make a counteroffer of your own. Think twice about countering terms that aren’t necessarily deal breakers.
If the seller rejects or ignores your counteroffer, but you still want to purchase the home, tell them that you’ll put in a new offer in a week’s time. Buyers typically add $1,000 to new counteroffers until negotiations resume or the seller agrees to a sale.
With all these tips in mind, you’ll know what to expect when putting an offer on a home. If you’re looking for property in San Diego, you may call/text 760 622 5087 or click here.