How to negotiate with sellers
Now that you have done all the dirty work and found your home, it is now time to negotiate a deal with the seller. The whole point of negotiating is so that you can get the best deal on the home of your choice.
1. Like I have said a million and one times, the most important thing before purchasing your home is, DO YOUR HOMEWORK! I cannot stress this point enough. It will probably be the most beneficial homework you have done yet. Not to mention the easiest, since you have your agent to help you every step of the way. Compare the home that you are considering purchasing with other homes in the area, to see what those homes are being sold for. Have your agent pull up homes that have recently sold in the area. With all the low priced homes and foreclosures, this is for sure a buyers market, giving you the buyer the chance to save thousands of dollars on your home. Speaking with neighbors and reading local real estate articles can help you tremendously in this area of your research.
2. Talk with the seller, get to know a little bit about them. Its important to make sure not to pry, as they may be going through something very personal that they don’t want to share with you. Find out what their situation may be, why they are selling. Are they in a situation where they are in a hurry to sell? If so this will make it much easier for the buyer to negotiate a lower price than the asking price. You can also speak with the seller regarding any known repairs that need to be made, and include those in your offer. Use your best judgment to avoid major defects in the property. A falling wall would be a red flag to find another home to place an offer on.
3. After you have done all of your homework, you can work with your agent to submit an offer to purchase to the seller. A good offer would be something made 12 or so percent below what the seller is asking for the home. This leaves a good window for negotiating and in the end saving you money. The seller reviews the offer with their agent, that’s when the negotiating begins. The seller in most cases will counter you back at a higher price then what you offered. You then review the counter offer with your agent and decide what price you want to resubmit. Many seasoned agents have told me that a good negotiation takes place when 3 counter offers are submitted between buyer and seller. Remember, the seller wants to get a deal too.
4. Don’t back down. When you submit an offer, be firm in your negotiating and remember that most likely the seller needs you more than you need them. Stay strong with your offer and negotiation and you will come out with your dream home, and a little money saved in your pocket.
If you work closely with your Real Estate professional, they can help you through the negotiating process. Its pretty simple to save a buck or two in this market, and your agent is here to help you do exactly that. Don’t get sucked into paying a higher price for a home than you have to.
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Yanni Raz is a mentor for many in the Real Estate Mortgage industry, Yanni Raz is been tutoring many homeowners in California and help some also to save their homes. http://www.homesinsale.com Article Source:http://www.articlesbase.com/real-estate-articles/how-to-negotiate-with-sellers-1374318.html
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