Negotiating a Lower Price When Submitting an Offer for a Home
How to Negotiate a Better Sales Price When Shopping For a Home
As the housing market has improved, sellers have gained some of their advantage back because they no longer feel the need to accept a rock bottom price in order to sell their home within a reasonable period of time. Sellers often have several potential buyers interested in their home and, often, there are multiple offers made on a home. This gives the seller a huge advantage because buyers are competing against each other and the sales price goes up.
However, if you are shopping for a home, there are ways that you can negotiate a better sales price rather than accepting whatever the listing price is for your dream home. Even though the housing market has improved, sellers are still motivated to sell homes quickly. These are the sellers that you will be able to negotiate with in order to lower the sales price for the home that you want.
Tips for Negotiating the Price You Want to Pay for a Home
• Offer the value of the home not the listing price. Your real estate agent can access the recent sales in the neighborhood to prepare a market analysis that will support your offer. If the home is priced above market value and has been on the market for a while, you will have more negotiating power, especially if you have a market analysis to back up your offer.
• Move quickly. If you see a home you want, make your offer as quickly as possible, especially if the market in your area is competitive. Also, make your first offer your best offer. By knowing what you are willing to pay for the home, you can get an offer in before anyone else and the seller may accept your offer if he wants to move the property quickly.
• Research your seller. The more you know about your seller the more power you will have when negotiating the sales price. For example, does the seller already have a new home and he needs to sell this home quickly or does he not have anywhere to go yet and would rather the sales process drag out a bit. Ask questions of the seller and the listing agent to learn as much as possible to plan the best strategy for getting your home for the price you want.
• Use public records to your advantage. If the seller or listing agent is not forthcoming with information, use public records to check for divorces and foreclosures. You may be able to determine if the house was previously on the market and, if so, what the listing price was during the previous listing.
• Try to avoid contingencies. The terms of the offer can be as important as the sales price that you offer. If you include a long list of contingencies (i.e. inspections, repairs, etc.), the seller may view you as a problem and pass up on your offer.
• Make your offer personal. Consider writing a short letter to include with your offer to purchase and include a picture of your family. Tell the seller a few specific things that you really like about the home and how you can see your family enjoying the home as much as the seller did.
• Be willing to compromise. As part of the negotiating process, you must be willing to compromise. Consider the difference that increasing your offer will make on your monthly mortgage obligation. If adding $5,000 to the offer will only increase your monthly mortgage payment by $20, it may be worth the extra $20 per month to have your dream home.
Contact Stephen R. Manning Law Office for more information about our affordable real estate services
When you are searching for a real estate attorney to handle your commercial or residential real estate transaction, you want an attorney with experience in real estate transactions and knowledge of Massachusetts property laws to give you reliable real estate advice.
The Stephen R. Manning Law Office strives to take the stress out of buying or selling commercial and residential real estate by providing support during every step of a real estate transaction.
We serve clients in all cities and towns in Massachusetts, but primarily in Western Massachusetts and Cape Cod, including the towns of Barnstable, Worcester, Springfield, Agawam, Hampden, Wilbraham, East Longmeadow, Longmeadow, Ludlow, Belchertown, Monson, Ware, Westfield, Chicopee, Dennis and Yarmouth.
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Teresa E. Stevens Teresa E. Stevens received her Bachelor’s Degree from the University of Massachusetts at Amherst in May of 2000, and received her Juris Doctor Degree
Stephen R. Manning, P.C. Stephen R. Manning, P.C. is a Massachusetts Professional Corporation. Its principal is Stephen R. Manning, who has been engaged in private practice