You found the home of your dreams and now it is time to make an offer. Working with a Realtor® will help you determine what price to offer. Ask your Realtor® to show you comparable properties that have been sold and are currently on the market. Your Realtor® will help you determine the amount of your offer.
The home you want to buy is listed for $200,000. After the Realtor® provides you with a list of comparable properties, you determine that the value is $175,000. You want this house. It is the perfect house. You are willing to pay $200,000 and will pay your own closing costs. Do you offer the full price or do you offer $175,000? This is an important part of the home buying process - negotiating the real estate contract.
In a buyers market, there are more homes for sell than there are buyers. If it is a sellers market, there are more buyers than sellers.
Assuming it is a buyers market, the house has been on the market for more than six months. It is important that you do not insult the sellers by making a ridiculously low offer, so you offer $175,000 and ask the sellers to pay your closing costs. When the offer is presented to the sellers, make sure your Realtor® has included a letter explaining to the sellers how you determined the price you are offering, with a detailed list of the comparables you relied on to make that decision.
The sellers understand why you made the $175,000 offer because you provided the information you used for your valuation. However, the sellers are not in a position where they have to move and therefore, not highly motivated.
The home buying process might involve a counter offer. Let's say the sellers counter your offer at $190,000 and agree to pay one-half of your closing costs. Remember, you were willing to make a full price offer and pay your own closing costs. You just saved over $10,000 (the $200,000 you were willing to offer less $190,000 counter offer), and you have negotiated the sellers to pay one-half of your closing costs.
Since you learned the home buying process, how to negotiate a real estate contract, you saved over $10,000! This deal has also resulted in a win-win situation for everyone. You did not insult the seller by making a low offer. The sellers now feel like they have negotiated a great deal because they were able to get you from $175,000 to $190,000 and they will pay one-half of your closing costs, instead of all your closing costs.
It is important to remember the sellers must believe they are in control and are able to negotiate a deal that is in their best interest. You started the negotiations in a way that resulted in a deal where everyone is happy. The home buying process does not have to be complicated. Use these tips to negotiate a successful real estate contract.
ไม่มีความคิดเห็น:
แสดงความคิดเห็น