When purchasing a home, negotiating for a good deal is commonplace. Just like buying a car, your goal is to make a purchase at less than the listed price. Just about every home can be had for less than the asking price – unless you are dealing with an extremely tight and competitive market. In that case, you might need to make offers over and above the asking price to win the home. Knowing what to offer is vital and doing so without preparation and help is futile. Read on to learn more about making offers on homes.
Know Your Target Prices
Attempting to buy a home without knowing how likely you are to get a loan is only appropriate behavior for lottery winners and the wealthy. The rest of the buying population should insert another step in the home-buying process and get a lender's advice. A mortgage preapproval means you can narrow your home search down to homes in your price range and gives the seller more assurances of a loan approval if they do accept your offer.
Gauge the Seller's Motivation
You don't need to hire a private investigator to learn more about a seller. Your real estate agent is full of valuable information about the reasons why a seller is listing their home and how likely they are to take a lower offer. For example, your agent might find out through the real estate grapevine that the seller is getting a divorce and needs to sell their home as soon as possible. Unfortunately, you might also find out that a particular seller has a history of placing their home on the market occasionally just to test the waters and have no real intention of selling at any price. Whatever the scenario, it's better to know any information available about the seller and the reasons for selling. Making offers based on inside information could help you up your game a lot.
Appeal to the Seller's Emotions
When a seller imagines strangers traipsing through their home and looking at their belongings, it can feel invasive. When a potential buyer disparages a home in an effort to make a deal, some sellers can take it personally. Instead of being that buyer, be the one that understands how upsetting it can be to leave a home where good memories live. You might be surprised how appealing to a seller's emotions can make your offer rise to the top. Sellers who have a choice might be more likely to accept a deal from a buyer that is enthusiastic and respectful about the home. While you might not come into direct contact with a seller, a personal letter to the seller via the agent is never a bad idea.
If you're looking at new home sales, speak to your real estate agent about offers that can help you win the home you want.