Negotiations
Training
Home
Sweet Home:
Tips
for Buying a House
You've been
looking for a house that you truly want to call a home. Month after
month, you've walked through enough formal living rooms, butler's
pantries and Hollywood baths to make your head spin. Just when you
thought you couldn't take it anymore, you found it! The perfect
house... It has everything you have been looking for - the three-car
garage, the kidney-shaped pool, the wooded lot and the hardwood
floors. Both you and your spouse are in
agreement - this is the house!
Are you ready
for the negotiation that will surely ensue? Your realtor will
do a great job of helping you with your paperwork and will definitely
be able to provide some pointers on the inspection and what will
take place during
the negotiation. They've seen their fair share of home-buyers
struggle with the
negotiation process and will know what you're going through.
Granted, your experience may depend on the condition of the real
estate market in your part of the country. In California, when it's
almost always a seller's
market, you'll have to be prepared for a rough time. In markets
where buyers have more
power, you'll have an easier time negotiating your way through
the process.
Regardless of
the market that you are about to face, you should keep in mind some
of the following negotiating tips:
* Avoid Making
Low-Ball Offers - Starting with a ridiculously low offer is generally
fruitless as most sellers won't even consider your offer. Making
an offer that is towards the lower end of what others houses
in the neighborhood are selling for is acceptable. Swinging below
that is not as you will be offending
the seller and normally will not be taken seriously. Check neighborhood
comps to get a better feel for prices.
* Walk Away
from Sellers Who
Refuse to Negotiate - Some sellers have unrealistic expectations
of what their house is worth and simply won't budge on a price.
These are sellers you should avoid. If their price is not comparable
to other houses in the neighborhood, they are not a
serious seller. Chances are, they're playing the market to see
what kind of price they can get (or what kind of sucker they can
reel in.) Do yourself a favor and move on to the next house.
* Sellers are
Just Like You - Most are honest and straightforward individuals
who simply want to get what is fair for their house. Don't engage
them like an adversary - work
with them to come up with a fair price that will satisfy both
of you. Open communication will help both the buyer and seller understand
motivations behind a position.
* Price isn't
The Only Item - If you can't too far
negotiating on price, look at what other areas might be open
to negotiation. Does the house need a new water heater or a
roof? Is the foundation cracked? Do you want the seller to include
a home warranty? These are all items that can be negotiated.
* Understand
Why the Seller is Selling - Has the original owner passed away
and the relatives want to sell the house? Is the seller being relocated
to another part of the country? Are the owners getting divorced
and want to get rid of the house? Perhaps the seller has a
contract on another house and needs to move their current home
quickly. This information will help you understand how motivated
your seller might be.
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