Home Buying Negotiations – It’s Not Just About the Price
The home buying process negotiations are about the whole offer and not just the price. In today’s competitive market, with multiple offers on many properties, Sellers are looking at terms as well as the price. You may offer a full list price or over list, but other terms may be unrealistic, such as requesting credits, repairs, possession, etc.
The cleaner the contract which is straight forward with minimal requests has a better chance of making the first round of negotiations. Other items such as removing contingencies. Rather than go with the default time period, shorten the days to remove the inspection contingency. This lets the seller know that you are serious and intend to do your inspections right away.
Closing dates are important. If you have already been pre-approved (which is a must before writing an offer), then all that is needed is the appraisal. Regardless of the type of loan, go for a 30 day closing or less if possible. Depending on the seller’s position, they may need more time to move and that is fine. At least you are showing everyone again, you are serious about the home purchase.
Does an all cash offer have a better chance of being accepted. Yes and No. Depends on the other terms of the offer. Just because someone is paying cash, doesn’t necessarily mean the price will be discounted. If the property is priced right and someone offers Cash at a lower than market price, then unless the seller is in a hurry to close – say in 10 days which is possible with a cash offer, don’t expect a discount if there are multiple offers.
In multiple contract situations you may have only once chance to make an offer so go with the best offer first. When in a seller’s market, there is less chance of having a second round of negotiations. Many times the listing agents and sellers select the best offer on the table and choose not to negotiate with any other offers.
So keep in mind when proposing an offer, while price is a big issues so are the terms. Put your best offer forward!
Filed under: General RE Tips
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