Tips for Making an Offer & Negotiating
Making an offer to buy a home is as exciting an experience as it is nerve-wracking. It’s a big decision to buy a home, but unfortunately, the acceptance of your offer is not entirely up to you. Once you make the offer, it’s up to the seller to accept, reject, or make a counteroffer. Here are several tips to help you make better, stronger offers.
Make an Informed Offer
- What was the seller’s original purchase price and date of purchase? Your real estate agent can help you find this information.
- Why are they selling/moving?
- How long their house has been on the market?
- Have they made any adjustments to or reductions in their listing price?
- Are they under any timing constraints?
- What are the local market conditions?
- How does the listing price compare to recent sales of in the neighborhood?
Make Your Offer Credible & Dependable
- Be pre-approved by a lender when you make your offer
- Make a good faith deposit to show you are serious
Limit Your Offer Contingencies to only those most important to you
- Financing terms - Either you or the sellers may need a quick or long close, depending on the specifics of your situations
- Sale of a current home – Your ability to get a loan and make the purchase may be dependent on the sale of a current property
- Home inspection results – The results of the home inspection(s) will allow you to negotiate over specific fixes or allowances that would need to be made before the offer is agreed upon
Limit Your Offer’s Emotional Impact. Buying and selling a home is an emotional time for both buyers and sellers. Remember, they are selling you their home – it’s difficult to find a more personal transaction and emotions easily run high.
- Work to establish good rapport with the sellers. Depending on your offer, you may need their cooperation during the transaction, so it’s best to start off on the right foot.
- Utilize your real estate agent to act as a go-between, limiting any emotional impact of an offer.
- The negotiation process is both give and take. Remember, the best offers are those that are win-win situations for both the buyers and sellers. Poor relations can lead to offers being rejected outright.