Do Negotiate the Price. You've been searching for a house for weeks, you've done all the research, you have a pre-approved loan and now you want to put in an offer to purchase the home of your dreams. So how much are you willing to offer the seller?
Before making an offer, determine the reasonable market price of the property. You can find this out by requesting for a Comparable Market Analysis on the similar homes in yourtarget neighborhood from your Realtor. Factors that affect the market price are the condition, location and amenities of similar homes that have already been sold plus the current market competition of other homes for sale in the area.
Once you know the market price then you can figure out how much you are willing to pay for your chosen home.
There are 2 successful negotiation strategies you can use in negotiating for the price of your new home:
Strategy #1: Start low and work your way up. This strategy is used when the property is overpriced in the slow markets. It is very important to consult with your Realtor on what the current housing market conditions are specific to the price range that you are looking in. For example, the market at the $100k-$200k range is significantly different than the market in the $400k-$500k range and this will impact what kind of offer will be accepted versus rejected. Local market conditions may also vary significantly compared to national market conditions.
Before making an offer, determine the reasonable market price of the property. You can find this out by requesting for a Comparable Market Analysis on the similar homes in your
Once you know the market price then you can figure out how much you are willing to pay for your chosen home.
There are 2 successful negotiation strategies you can use in negotiating for the price of your new home:
Strategy #1: Start low and work your way up. This strategy is used when the property is overpriced in the slow markets. It is very important to consult with your Realtor on what the current housing market conditions are specific to the price range that you are looking in. For example, the market at the $100k-$200k range is significantly different than the market in the $400k-$500k range and this will impact what kind of offer will be accepted versus rejected. Local market conditions may also vary significantly compared to national market conditions.
Strategy #2: Set deadlines for action. This will push the seller to make a decision on whether to accept your offer or not.
It is alsosmart to find out why the property is being sold. Events such as illness, marriage or job transfers may urge the sellers to settle for a price below the market value because of the urgency of their fund requirement. On the other hand, Retirees want to gain the highest profit as possible from the sale of their property to supplement their retirement income.
It is also
A Realtor will be able to negotiate the best price on your behalf. Consult with a Realtor on how to put together a realistic offer that has a good chance of being accepted.
Next topic: Understanding the Contract
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