When you go to buy a house, you’re certainly hoping to get the best price and terms. In order to do that, it’s important to know when to start negotiating and when to stop. That begins with being familiar with the market, down to the neighborhood and possibly even the street. Of course, when there are a limited number of homes for sale as is the case in our marketplace today, it is highly unlikely that a laundry list of demands can be successfully negotiated. The more operative word today would be flexibility. Here are some tactics every buyer should know before negotiations begin.
Be Prepared to Move Fast
When properties go on the market, they go very quickly, so if you’re in a competitive market, make your first offer your best offer. And if you take too many chances, you might strike out. Remember, there will always be people who want to make a lower offer, however, when they miss out on the first or second or third property, they learn their lessons.
Don’t Use Inspections for Renegotiation
If the inspection reveals major problems, it’s completely acceptable to ask for a credit. However, know you may not get it if the market is tight. These days, it’s unlikely that a seller will make significant repairs, and so it’s better to ask for a credit at closing in order to hire your own contractors. In some hot markets, in order to submit an offer with fewer contingencies, prospective buyers have an inspection done before making their offer.
Be Flexible with the Possession Date
As a homebuyer, a great tool for negotiation is to accommodate a seller's particular closing date. By catering to their needs, you're making them feel like they're in the driver's seat. You could have a “rent-back” agreement drawn up, where you rent the property back to the seller for a short period of time. This takes pressure off their move and may make your offer stand out against the competition. If possible, also make it clear that you can also be flexible with the dates of the Purchase and Sale signing.
In every real estate negotiation, buyers ask and sellers push back - because if you're the buyer and you don’t ask, you won’t get. While buyers want the best deal and sellers want the highest price, eventually the two will have to meet somewhere in the middle for the deal to close. Since a home is the largest asset most people will ever own and there’s usually a lot of cash at stake, negotiating is extremely important.
Working with a REALTOR® provides clients with peace-of-mind that they will be receiving both professional and ethical service during the home buying or selling process. Learn more about purchasing a home and find a REALTOR® to help by visiting Three Rivers Association of REALTORS® website, or calling 815-744-4520.
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