There is a delicate balance in the art of negotiation. Many on both sides of a negotiation misinterpret “winning” as completely destroying the other side and taking all the marbles. They see a negotiation as something similar to a jousting competition where one will completely knock the other off the horse to achieve a victory.
Then there’s the art of the “Win-Win.” A scenario where both sides feel good about how the negotiation was settled, and the transaction goes through in an extremely positive manner without any hard feelings or remorse.
Bringing this around to the home purchase, it is my job to insure buyers understand the art of the Win-Win, and help them craft a home purchase offer that will not only get them what they want, but will leave the seller feeling satisfied as well. That being said, here are a few things to consider when crafting a home purchase offer:
DON’T “LOWBALL” ON THE ASKING PRICE
Lowballing (Asking a unrealistically low price) is right out of the handbook titled “Bad Haggling 101,” and is one of the first things you as a buyer should get out of your head. Sales of homes are based on Fair Market Value, meaning that prices are based on what the market will bear. There are several factors that go into the listing price of a home, and while we may decide to make an offer that is lower than the listing price, it will be based on several factors such as the condition of the property and comparable sales in the area.
BE REALISTIC IN YOUR EXPECTATIONS
Some buyers I’ve worked with have made up their minds about what price or terms they will accept in making an offer before they even have the chance to know anything about the home they are buying. This has often led to frustration, not to mention the buyers losing out on a home they really wanted.
One of the things I do as a realtor before helping buyers craft a purchase offer is to communicate with the selling agent to see if there are any conditions, terms, or needs on the seller’s part. Why? This way I have information on our side that will give us the confidence to write an offer. There also may be conditions ion behalf of the seller that will not be suitable to you in making an offer on a given home. It is better to know up front than to have your hopes dashed when you write an offer that the seller won’t accept.
BE PREPARED FOR A COUNTER OFFER
Even the best of purchase offers can be countered by a seller, especially if they have received multiple offers. Remember, they can only pick one, so they may leverage their home’s popularity and send out a counter offer to try and negotiate a better deal on their behalf. Be open to a counter offer, and think about whether the counter is worth accepting, or whether you want to “counter” the counter offer. I will use my expertise and experience in helping you deal with any counter offers that come your way.
HAVE YOUR “DUCKS” IN A ROW
Sellers like to know that the people who are trying to buy their home are the real deal. In other words, they want to know that a buyer is ready to go when they accept the offer, and that there will be no unforseen hangups on the sale of the home due to the buyer’s lack of due diligence. Making sure you have a loan pre-qualification, a good faith deposit, and a solid offer will help ease the seller’s mind and help get you that home. I’m here to answer any of your questions, and help you get prepared to make the best offer possible.
There are many other examples of putting together a great home purchase offer. You can find out more by going to http://scvresourcecenter.com, or by calling me at 661-964-1256.