Negotiating with
Sellers
Buying a home is one of the most important purchases
you will make. In order to make the right decisions
the first time, potential buyers need to be prepared.
Consider the following before starting negotiations:
Do Your Homework!
Research the housing market in the community or neighborhood.
Once you have sufficient information about the general
area, focus on a particular property and seller. Try
to obtain answers to such questions as:
- Why is the homeowner selling? (If they're moving
because they find the area undesirable, you might
also.)
- How long has the home been on the market? (If it
has been on the market for a long time, perhaps there
are negative facts about the property that you need
to know.)
- Did the seller pay more for the home compared to
the current asking price? (If the seller paid more,
find out why. Was it a general real estate trend,
or did property values in that particular neighborhood
decline?)
- What is the seller's time frame for selling and
moving? Does it fit within your needs? (Are you able
or willing to use storage and/or temporary housing
to accomplish the sale?)
- Does the home contain any defects? Are there problems
with adjacent neighborhoods? (i.e., Is the roof aged
and likely to leak during the next storm? Is there
new construction in the area that might cause traffic
congestion?)
As the potential buyer, you NEED the advantage. While
you want answers to all your questions, remember to
reveal very little to the seller. NEVER give the seller
personal information about your income, the amount
you're able to pay for a down payment or the home,
or when you might want to move.
DO NOT let the seller see your excitement if you truly
like the property. Appearing desperate or overly enthusiastic
will tip the seller that he has the stronger bargaining
position. When meeting with the seller or listing agent,
keep your emotions in check.
When YOU GOT MIKE, he’ll do all the Homework
for you AND negotiate the best price and terms to help
you purchase your next home.
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