Helping You Negotiate a Fair Deal On Your Next Real Estate Purchase
Depending on what the housing market looks like, there are times when a buyer has more power than a seller and vice versa–by “power” we mean power to negotiate.
(Bear with us while we get a little technical here.)
If the amount of homes for sale in a particular market is greater than the number of buyers in that market–then generally the buyer has more power to negotiate.
If more buyers are looking to buy in a market with fewer homes for sale–the buyer doesn’t have much power when it comes to negotiating.
Real estate negotiation is like a game–know the game (or have a real estate agent who knows the game) and you’ll have a better chance of winning! Follow these tips for negotiating a real estate offer and with any luck, you’ll land a sweet (and fair) deal on your dream home.
1. Hire a real estate agent you trust
Pair up with a real estate agent you can trust to not only help you navigate the real estate process to help you negotiate a fair offer on your buy or sell. real estate agent know the ins and outs of real estate. From their ability to identify comparable sales (or “comps”) to their knowledge of the market and its offerings–a real estate agent can be a big help when it comes to negotiating Real Estate deals.
Tip: Find a real estate agent who will work only in your favor and be transparent throughout every step of the process. After all, it’s your investment, you deserve to work with someone who has your and your wallet’s best interest in mind.
The Redbud Group has some of Charlotte’s top producing real estate agents and transaction coordinators. We always take your needs and wants into consideration to get you the best home, at the best price. As we like to say, “Trust your real estate agent, worry no more.”
2. Be reasonable with your offers
Only submit an offer if you believe it has a solid chance of being accepted the first time. A reasonable offer will not only make the negotiation process more efficient, but it will help you avoid offending the seller or having the seller accept another buyer's offer. Work with your real estate agent to put together an offer that can’t be refused.
3. (Have your real estate agent) look at the comps
“Comps,” are used to assess a home’s worth and to help a buyer determine a fair offer price. Comps are typically based on properties similar to the house in question (same size, same area, same number of bedrooms and bathrooms, and same style) that were recently listed or sold. To find comps, check recent listings and recently sold properties in the area, or ask your real estate agent to dive into their database and provide you with some of their expertise.
4. Ask for closing costs help, but be careful
In a seller’s market, buyers often have to choose between getting a good deal on the house or getting help with closing costs. Getting both is not impossible, but it can be difficult. If getting help with closing costs is absolutely necessary, you’ll likely have to add all or a portion of the help you are asking for to your offer. This can lead to appraisal issues, so be careful. Consult with your loan officer first so you don’t derail your financing.
5. Consider a repair credit
As you’ve heard us say before, inspections are a must. If the inspection reveals necessary repairs, consider asking the seller for a “repair credit” instead of waiting for the seller to have the repairs done or paying for the repairs on your own. Not only does this save time during the closing process, but it also allows you to choose the repair professionals you trust to get your new home in perfect condition.
Negotiating a real estate offer can be tricky, but these tips should help you get closer to closing on your perfect home. For more homebuyer help, download our free guide, Homebuyer 101: Top Questions Your REALTOR® Will Ask.
