Last week, we talked about some ways to know when to walk away from the real estate deal. This week, let’s flip the coin and look at some of the ways you can sweeten the deal to get your dream house. Read on to find out more!
You’ve done it; you’ve searched countless properties online and in person. You’ve weighed out the pros and cons, double checked your budget, gotten preapproved and now … you’ve finally found the perfect property! The problem is, if it’s a great house, in a great location, with a sweet price, then you might be up against some buyer competition.
Do a little research.
Find out why the seller is selling, if at all possible. Often, this is as simple as asking your realtor to relay your questions to the seller’s realtor. If they are highly motivated to sell because of a death in the family, a job transfer or divorce (for example), then you know you have some negotiating room. If they are certain they’ll get asking price and have all the time in the world to get their house sold, then you’ll have to shift your strategy. Also, find out what the seller’s least and most favorite aspects of the house are. Their answers might direct you to see how perfect the property is for your family, or they might give you reason to move on, plus add to your checklist of things to look out for during your house hunt.
Compare this home (and the asking price) with other homes in the area.
Even if this is an amazing house, if it’s located in the heart of the city vs. in the middle of the country makes all the difference in price. Be very aware of the market values in all the places you’re searching; house prices can change from town to town. Again, this is something your realtor is well-equipped to help you figure out.
Offer asking price.
If the house clearly has some wiggle-room built into the asking price, then maybe offer a few thousand less. But, if it’s a great price and you’re certain you want the property, go ahead and offer asking price–or even a few thousand above. Your offer is possibly being weighed against other offers, so the more money the better, from a seller’s perspective. Your realtor will be able to help you determine how stiff your competition is, so you can come up with a strategy.
Your realtor has probably already advised you to do this. It protects you. You’re investing lots of time and mental energy into house hunting, and you don’t want all that to be for nothing because you find out you can’t secure a loan. But, the preapproval letter also communicates your level of seriousness to the seller. It says you’ve already taken steps toward buying a home. It also says the deal is less likely to fall through in beginning stages; you’re a buyer backed by money, so the seller is more likely to get paid quickly for their home and not have to wait around for the bank to approve the mortgage.
Good luck! And visit DarleneReeves-Kline.com for your East Tennessee realty needs.