Anyone buying a property wants to get the best price. A smart offer can not only help successfully close the deal, but it can also earn me your gratitude and loyalty by saving you thousands of dollars, both upfront and over the life of a mortgage.
1. How to read the market.Here are five tips to put your home in a better negotiating position:
2017 is likely to remain a seller’s market for the most part, though buyers are expected to have more choice in 2018 or 2019. You should be aware of this so we can set expectations. If demand is hot and properties are scarce, I urge you to think twice about playing hardball — or you may find the potential Buyer selling the house to someone else.
2. Be realistic about price.
The seller’s market means one of the toughest dilemmas I have is figuring out how to counsel you when you fallen in love with a house beyond your means. Be very careful when looking at houses where the List Price is higher than you can afford. I know it "has been completed updated, has great views, and was just amazing." But houses like that are going to get multiple offers and sell above asking price.
Be realistic and understand... if there’s an incredible house and you’re already at the top price you can handle, there is a very good chance that you could be outbid. You can save a lot of time and emotion and frustration if you just move on.
3. I highly discourage unworkable “lowball” offers.
The housing market has heated up in many parts of the country, so gently I discourage those who want to get tough with the sellers. We’re not in a market anymore where you can lowball somebody $20,000 below the list price. Look at the listing and selling prices within a half mile to help determine what’s reasonable. Don’t lose your bid on a house to save $5,000!!
If you’ve found your dream house, do you really want to let it go for a $5,000 difference?
4. I encourage you to do your homework.
Check the MLS to find out how long the house has been listed. If it’s been on the market longer than the average amount of time in that area, the seller may be ready to bargain. Any problems with the house? Sellers are require to disclosing this information by law.
5. Help yourself by getting pre-approved for a mortgage.
Getting pre-approval on a mortgage means you will know their price range and have a better chance at a smooth closing. Without it, your offers are going to fall apart more often than not. Because a Seller will choose an offer that includes a Pre-Approval.
