Better Homes and Gardens Real Estate Life

Tag: Negotiating a Home Sale

  • 5 Tips on How You Can Survive a Seller’s Market

    Searching for the perfect home can be challenging, regardless of the market, and even more so when it’s a seller’s market. It can feel like you’re constantly hitting roadblocks and meeting dead ends, as the sellers are in full control.  However, all you need is a bit of momentum, encouragement, and these five tips from our Ask a Pro expert Karlton Utter to survive a seller’s market and find your perfect home:

    1. Come to the Table Prepared with a Prequalified Loan

    Be fully prepared with a prequalified loan as soon as possible. Obtaining a prequalified mortgage shows sellers that you are a serious buyer who is able to meet your end of the sale to close the deal. This puts you on an entirely new playing field, with a little more control than what you would have had without a prequalified mortgage.

    2. Be Taken Seriously by Bringing all the Paperwork

    Show the sellers that you’re not kidding around. In a seller’s market, it’s important to show them that you mean business and that you and your offer should be taken seriously. Show up to the table with not only a prequalified loan but with all the paperwork that supports the proof of funds, such as an approval letter from the lender. Actions speak louder than words, and this will definitely entice the seller to work with you!

    3. Be Flexible and Discuss Compromising

    In a dry market, it’s important to remain flexible. Placing too many limitations on the real estate market will make it even more challenging to find a home. Widen your horizon within the real estate market, as this could introduce you to new homes that you would have never seen otherwise. Being more flexible can also make the process of buying a home easier. If you are hesitant to look outside of your pre-determined boundaries, it’s important to consider compromising. You may be required to give something up – such as a desired feature in a home – just to stay within the area you’re set on. Sometimes by compromising a little, you could have it all and possibly for less.

    4. Be Readily Available to Sellers as Much as Possible

    With so many buyers looking for homes, timing is essential. It’s important to remain readily available and open for communication with your sellers, and be prepared to make a move on an offer at a moment’s notice. Make it a goal to respond quickly and follow up on requests – or just follow up to get updates if you have not heard back. Communication is not only important for timing, but it also builds rapport with your seller. This can make the difference in getting the offer and property that you want.

    5. Don’t Play Hard to Get

    Now is not the time to play hardball. A seller’s market leaves very little control to you as a homebuyer. As such, you need to be willing to follow the seller’s lead, as opposed to challenging it with bullheaded negotiation tactics that work in other situations. Limit the contingencies, make a bold offer and if the sellers make a counter offer, proceed carefully by negotiating from there.

    With the proper approach, you can find your ideal home – at your ideal price – even in a seller’s market.

  • Your buyer asked you to pay closing costs. Now what?

    Say that you received an offer on your home, but your buyer is asking you to cover all the closing costs. What are your options in this type of situation? You generally have three choices: accept, reject, or respond with a counter offer. If you’re confident that you are in an accelerating market and that your home is in fact marketable, you could simply reject the offer and wait for a better one to come along. However, if you want to work with the buyer to reach a common goal, then you will need to write up a counter offer.

    Whether it’s accepting an offer or negotiating a home sale, your decision should not be reactive. In other words, you should think through your options thoroughly.

    Deciding to Accept or Decline an Offer

    For instance, before you decide to cover all the closing costs, you want to make sure that no other buyer will beat the offer. If you find that the offer is reasonable, then you can accept the terms with no changes. While closing costs can be considerable, they do not necessarily have to deter you from accepting an otherwise appealing offer. In other words, if the buyer is willing to accept your asking price that is substantially higher than what you paid for the home, covering the closing costs may still leave you with a nice profit and return on your investment. In such case, assuming there is no better offer, it might make sense to accept and sign the offer as is. Conversely, if you decide to decline the offer, then you want to make sure you have others lined up.

    Countering an Offer: Negotiating a Home Sale

    In terms of negotiating a home sale, there are a variety of factors to consider. For example, the condition of the market, your situation, and the property itself can all play a role in determining how much leverage you have. For example, if the buyer asks you to pay all the closing costs, then you have to ask yourself what kind of market you are in. If you’re in a buyer’s market with fierce competition, then you might have to concede to the terms of the buyer’s offer. However, if you are receiving multiple offers, then you could write a counter offer to pay some, but not all, of the closing costs. You could also agree to cover the costs with stipulations of your own.

    In any case, negotiating a home sale is by no means a simple task, so the expertise and insight that a real estate professional can provide is an invaluable resource. If you find that you are unsure of what to do after receiving an offer, it is helpful for you to consult with a seasoned real estate agent. For more information about negotiating a home sale, contact us today! One of our Better Homes and Gardens real estate agents will be more than happy to assist you with your home sale!