Reaching the stage of making an offer on a home is great, however now is not the time to relax. You have to be prepared to negotiate with the seller, having counteroffers from both of you going back and forth.
There are different negotiating tactics that may or may not work, however implementing one can make or break the deal.
The seller will always have a reason why they must not drop their price; the listing price is generally not the highest price the seller is after, more like a price they feel they deserve to get. This is of course logical for the seller to do, and with the housing market doing better it makes sense for any seller to want the price they set.
When you are making an offer on a home you have to consider how you might feel if you were selling your home and such an offer came in.
Therefore, when making a low offer, remember you are telling the seller “this is what I think your house is worth”. It can cause the seller to become furious and either send back the listing price as the offer, or even a price higher than the house is marketed for.
In a sellers’ market this can happen, so if you do make an offer far less than the listing price, be prepared to either explain or be ready to see no change I the counteroffer in your favour.
Keep in mind that the lower of an offer you make, it gives the seller an idea of how much you would be willing to go up by. If you give a ridiculously low offer, they might not even bother contacting you because they deem your offer a waste of time.
If you are placing an offer on a house that you know it getting multiple offers, consider placing a larger deposit. This will show the seller that you are serious and have the money to back you and the purchase.
When it comes to negotiating any purchase, it is rare for both sides to win. Decide on a price that is suitable for you and the seller and with that, begin negotiating.
Glen Chapman
Broker of Record with Club “100″ GMAC Real Estate
www.club100realestate.com
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