November 30, 2011 Posted by: Liann Walborsky
Eyeing that home in your neighborhood that’s been on the market for six months with nary a bite? Thinking about coming in with a lowball offer? As they say — nothing ventured, nothing gained. It’s worth a shot especially in a real estate market where some properties are languishing for months. Sellers do become desperate to sell and might consider taking less than what they had originally hoped for. Couple of suggestions if you are considering making a lower offer:
1. Understand the market. Find comparable properties and research what they sold for. Know the neighborhood. Just because you keep hearing on the news that the housing market is down, does not mean that your particular town or area is on the wane. 2. Provide details on how you determined your offer. In other words, pretend you’re back in school and writing a paper. Your professor would require backup information on your stated theory. It’s the same thing when you are dealing with a buyer. Demonstrate how you came to your offer price and why the buyer should accept it. 3. Make sure that you have an experienced real estate broker. Negotiation is an art – one that evolves from experience and a good understanding of the business. Some brokers want to get the deal done as quickly as possible and simply appease the seller. Make sure that you and your broker have a good working relationship and that he/she has an understanding of your needs. 4. Know how much you are willing to pay. This provides the wiggle room needed for negotiation. Even if you come in at a low offer, realize that there will likely be some counter-offering from the buyer. If you are willing to move up a certain amount from your initial offer, both parties are more likely to walk away satisfied. 5. Try not to put in too many contingencies. If you are offering less than what the buyer wants, make it an easy, fast deal. Don’t ask for lots of special concessions and, try not to make the deal contingent upon selling your home first.
Yes, there are deals to be had. Do the work and you may reap the reward of being able to purchase the home of your dreams.
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