Getting A Better Deal
Know Your Market:
Let's face it, the more you know about the environment you're negotiating in, the better deal you'll get. Having a Realtor who understands the landscape is important to getting a home for better than market value.
Present Your Knowledge To The Seller:
Negotiation begins before we write and present the offer. It's important to communicate expectations to show them you care and paint a picture of who you are. This will help the seller see you are different from the competition.
It Starts With The Presentation:
Once you've set up the offer for a powerful presentation, you make it easy for the seller to understand there are concessions for things that need to be repaired, replaced, updated...
Contract Changes vs Repairs:
Many times the seller just doesn't have the cash to give you cash back for the repairs needed to the home. If we ask, there's a good chance they'll lower the pre negotiated asking price of the home in leu of the repair. Buyer be aware, if they've already disclosed these repairs, they're less likely to make a concession. On the flip of the coin, if you've already run your appraisal, you may not want to change the value of the home, in fear the appraiser will come back out and agree with your assessment of the home and lower the value, in turn lowering your ability to borrow as much of the home.
3. Closing Costs
The Price Reduction That Happens ForSURE:
May times all buyer thinks about is the offer price presented and trying to bring that number down. Once issues are spotted with the home, instead of asking them to lower the asking price, maybe ask them to pay for some of the closing costs.
Know Your Guidelines And Limits:
Having a seller who's willing to work with you by giving you an ability to round your closing costs into the loan can also be very valuable. Just remember, many lenders will only allow a 3% cash back allowance for closing costs. It's important to communicate with your loan agent and set realistic goals for the up-and-coming negotiation of the purchase agreement.