How to Negotiate with Sellers When Buying a HomeBy Angela Smith, Communications Manager
August 12, 2020
With the real estate market currently being a sellers’ market, many buyers are finding themselves in stiff competition with other homeowner hopefuls.
How to Negotiate with Sellers When Buying a Home
With the real estate market currently being a sellers’ market, many buyers are finding themselves in stiff competition with other homeowner hopefuls. So, it’s important to have the right tools like strong negotiation skills to help you win your dream home.
Not only will you most likely be negotiating price, but you’ll negotiate other things like closing costs, appliances and other décor as well as fixing items you or your inspector finds. There are many factors to consider when you’re trying to negotiate with a seller on a property.
Be realistic. Do research on the property you are interested in and find out what the previous selling price was as well as what other homes are selling for in the area. If the property seems to be fairly priced, make an offer you and your real estate agent are comfortable with. Don’t start with an offer too low or your offer might insult the seller and not even warrant a counter offer.
Negotiate on the total transaction, not just the price. Instead of just focusing on the price, you’ll want to consider all of the realtor fees, closing costs, earnest money, etc. You need to figure in any costs to fix things in the home that will end up your responsibility. You can also add in these things to your offer. You’ll also want to know about how much you’ll be paying per month and make sure that price fits your budget.
Be creative. Instead of offering a lower price on the property, consider offering a price closer to the asking price and ask for things like leaving the appliances, sharing closing costs or fixing items found in the inspection.
Set yourself apart. If you know you’re going to have some competition on the home you want, there are little extras you can throw in with your offer that may help you seal the deal. Things like offering a fast closing, showing your pre-approval paperwork, and writing a personal letter to the sellers explaining that you love their home and will take care of it could help sellers lean your way.
Set an expiration date. Don’t let your competition get in the way by giving a 24-hour expiration date on your offer.
If you still have questions or are nervous about making an offer or negotiating, an experienced real estate agent will be able to help guide you through the process and help you land your dream home. Find a United Country Real Estate agent near you by visiting UnitedCountry.com where you’ll also find all of our available properties for sale.