How to Negotiate with Sellers
Because selecting and buying a home is one of, if not the, most important purchases that people will make, it is crucial for buyers to make the right decision the first time.
In order to do this, there are a number of questions a buyer must be ready to ask in order to be adequately prepared to confidently negotiate and make the right purchase.
Why is the Homeowner Selling?
A very important answer to look for before selecting a new home to buy is: why does the seller want to sell their home? Are they simply relocating for their career? Are they moving because, for one reason or another, they find the property undesirable?
Are they experiencing financial issues and need to sell quickly? All of these questions are significant and can help you gain leverage while dealing with the negotiation process. Additionally, looking to answer this question can help you eliminate properties that aren’t as suitable as you may have thought.
How Long Has the Home Been on the Market?
Often times, people will see a home that has been on the market for an extensive period of time and make the assumption that the seller is simply desperate to sell. In many cases, however, that is not the reason and finding the answer can help you throughout the process. Often times, a home that has been on the market for an extensive period of time is due to stubborn or unmotivated sellers.
In the case, sellers will often price their home higher than it should be in order to test the market and, because they aren’t motivated to sell, will be less open to negotiations. Your real estate agent, by speaking with the seller’s agent or otherwise, should be able to help you answer this question, which will give you a lot of information about what to expect from the seller.
How Much Did the Seller Pay for the Home?
Are they selling at a loss? If so, it is important to find out why. If it was simply due to market trends, you may not have much to worry about, but if property value dropped in a specific area or neighborhood, you may want to be more cautious. If they are selling at a higher price than they paid, you should also try to figure out the reason. It may be due to the market or being in an area experiencing high growth. It could also be simply because the home is overpriced. There are a number of reasons for a home to be priced at a given amount; finding the answer can only help.
What Condition is the Home in?
Many buyers, especially first-time buyers, don’t factor in the overall condition of a home to account for future repairs. Analyzing the condition of a home will not only give buyers more leverage in negotiation, it will also protect the buyer against unexpected, often costly, repairs in the future.