Negotiating With A Seller
Let Your Ahwatukee Realtor Guide You
Your real estate agent will guide you through determining the right price
to initially offer. It’s always best to let your Ahwatukee real estate agent
present an offer without your presence since they have been trained in
negotiating techniques and can detect for signs of an urgency to sell.
However it is exclusively your decision to determine an offer price with
any conditions to the offer. These following hints will help guide you
through the negotiating process.
Be Aware of Conflicts of Interest
Homebuyers will drive-by a home for sale and contact the real estate
agent listed on the for sale sign. Realize that the contact agent is probably
the listing agent for the seller. As such, they are obligated to represent
the interests of the seller and not the buyer. This conflict of interest could
be a disadvantage for you as an Ahwatukee homebuyer. Often it is best to
hire your own real estate agent who will exclusively represent your interests.
Hiring your own Ahwatukee Realtor costs you nothing since the seller pays
the commissions so you may as well strengthen your negotiations position
by hiring your own agent.
Loan Prequalification and Preapproval
A loan prequalification gives you a negotiating advantage. A loan
preapproval will give you a greater advantage. Having a preapproval letter
with an approved loan amount tells the seller that you have been approved
to buy their home providing it is within the approved loan amount and the
home passes the lender’s inspection. You become a more credible buyer.
Depending upon the seller’s urgency to sell, they may accept your lower
offer price versus that of another buyer who has yet to be approved for
a loan. Read this article.
Since you would be preapproved, an escrow close could occur quicker
with less potential of last moment problems with a mortgage lender rejection.
See our list of potential mortgage lenders and brokers in Ahwatukee.
Determining Your Initial Offer
You first need to know what a reasonable market price is. Have your
Realtor prepare a Comparable Market Analysis for similar homes
previously sold in Ahwatukee within the targeted neighborhood. A home
appraiser will only generally consider comparable sales within the previous
six months.
It is important to know whether asking prices are trending up or down.
Consider Seller Motivation
Consult with your agent to try and determine the urgency of the seller to
consummate a sell. The length of time the home has been on the market
could be key. If it’s been for sale for a long duration, the seller is more
likely to consider concessions. The sale could be motivated by a divorce,
a possible foreclosure or a job transfer. The seller may have purchased
another home that is nearing escrow close and they may be stuck with
two mortgage payments. On the other hand, a seller may very well be
willing to “wait it out” until they are offered the asking price.
Key Strategies To Consider
When previewing a home, do not show any positive emotion. If the
owner is present, be courteous and friendly but do not demonstrate
your excitement of any features. You don’t want to give the seller any
hints that you are anxious to buy his/her home.
Consider being flexible with your moving dates. The seller may need
some extra time after closing for convenience. Considering a “leaseback”
for a short time may give the seller access to funds from the sale to
accommodate his/her closing on another home they are purchasing. If
the situation fits, the seller may consider a smaller offer because it fulfills
convenience. A word of caution…do not enter into a leaseback of more
than 30 days because the lender may consider you an investor and could
get a larger interest rate.
Making Your Initial Offer On An Ahwatukee Home
Rarely is an initial offer accepted by a seller. Therefore consider offering
a price that is below what you are actually willing to pay. Typically
the seller will count-offer and if you get lucky that counter-offer may be
well below what you were willing to pay.
Always make your offer contingent upon a home inspection. If a home
inspector uncovers construction or repair problems, it gives you the
opportunity to rescind the offer or gives you an opportunity to renegotiate.
Conclusion
The goal is offering a price that is reasonable enough to get the home at a
price that is less than you are actually willing to pay without insulting the
seller. You want the offer to be close enough that the seller isn’t willing to lose
the sale to you as a strong buyer.
Additional articles of interest to Homebuyers.
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