When searching for a home, it is important to determine the seller’s motivation. By knowing this fact, it can help assist you in negotiating in terms of your offer price.
The motivation of the sale can be either a negative or positive one.
If the vendor is selling in a buyer’s market, be thorough into finding out why the vendor is selling a market that is clearly disadvantageous to them, because in terms of negotiating the sales price, they will most likely not be getting what they want.
A few principal reasons properties might be for sale would be:
- Separation or Divorce
The vendor will most likely want to leave the premises as soon as possible, giving you plenty of space to negotiate the sales price to what you want.
- Loss of job principal wage earners
This is the case where two wage earners are necessary to pay for the home expenses, and the one of the wage earner loses his/ her job. This case can be a bit tricky, as the current homeowners will want to sell for their asking price if not a little below it. They will drag on their listing until they find the house or until they lose it. It can be a difficult negotiation if you want to buy the property much lower than the asking price.
- Job Relocation
The vendor is on a time restraint and will generally take the best offer for their home. Unless they are not moving that far, they might consider waiting until the house sells for the price they want.
- Downsizing
One of the biggest reasons to sell is downsizing. Families will find that they no longer need a big home once their children have moved out and their home becomes less busy. Sellers in this case will wait for their asking price, or something relatively close to it.
- Owners want to sell before the market becomes worse
When the owner wants to sell in a seller’s market or is concerned that the market is changing to a buyer’s market, they will want to sell in a certain timeframe. This is the point where you have to wait and see how long the house will be on the market for, depending on this you can negotiate for a lower price.
The points I have listed are generally why a house is for sale, however there are special cases, which I will not get into today. Keep in mind that if you can find why the house is being sold, you can likely get negotiate in your favour.
Heleen Jacobsen
Broker of Record with InfoMarket Group GMAC Real Estate
www.infomarketgroup.com
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