A deal of any sort usually comes with a negotiation period. Buying a house is no different.
However, what do you do when the seller already has the upper hand? Here, we go over negotiation tactics you should avoid if you really want to make your offer shine.
First things first
Before you start thinking up ways to make this deal sweeter for you – do you have a Real Estate agent?
An in-depth conversation with your Realtor about your game plan can help determine which tactics to avoid and which may be worth it.
Here is a helpful article on choosing the right buyer’s agent for you.
Also, make sure you and your partner are on the same page. The last thing you want is a change of heart ruining a Real Estate deal.
Avoid a lowball offer
It is perfectly normal to think a house is not worth as much as it may be listed for. However, in a seller’s market, how much you think it is worth holds little weight when negotiating.
There are other buyers competing to snag the same home you have your eyes on. To make your strongest and best offer, you will have to offer asking price, if not more.
A low offer will risk insulting the seller and may give off the impression that you are unfamiliar with the current market.
Asking for extras
In a buyer’s market, it is not uncommon to see an offer where the buyer asks for:
- Certain pieces of furniture or appliances to stay
- Repairs to be made
- Pricing for upgrades be taken off the contract price
- Closing costs or certain fees be paid for by the seller
Any negotiation to these items can cause a deal to go south if other offers are on the table. It is best to stay away from asking for add ons – or offer to pay for them yourself.
More than likely, the inspection report will return with a suggestion or two to improve the home.
Any home improvement that is not a major concern should not be the seller’s responsibility. Nor should it be any reason to try and negotiate the price down for a minor repair.
To present your strongest offer, you have to show the sellers you are willing to take the house in the condition it is in. In fact, in a seller’s market, most homes are sold “As Is”, meaning that the buyer is aware of any issues and the seller will not negotiate to fix them.
Navigating a seller’s market can be tricky, but not impossible. With the right Real Estate agent on your side and an understanding of what becoming a homeowner means, you may be surprised at how quickly your offer can be accepted!