Four Tips to Purchase a Home at the Right Price
Today’s real estate market is thriving, but it offers its share of challenges. Buyers have more competition out there vying for the same properties they are interested in. A limited inventory of homes means that when buyers find the perfect home, they need to act fast and place an offer. Hesitation or placing an offer that doesn’t capture the seller’s attention may cost you that home.
Perhaps you’ve already been in that position: losing out to a better offer from another buyer. It’s devastating. So, other than placing your offer faster, how else can you improve your odds of beating out the competition—and still getting the best price?
Here are a few tips to boost the appeal of your offer to sellers while getting the best deal:
Let the reason for the sale guide you: This means trying to learn why the sellers are moving. Ask your Realtor if they know or can casually get the scoop. Often you will learn if there is urgency, downsizing, relocation for work, or their growing family has outgrown the home. If you can make your offer appeal to them and their needs (like adjust the closing to their relocation schedule, for example) it can help you seal the deal. Also, when you view a home share basics about yourself with the seller’s agent. Essentially, make it possible for them to know a little about you. This can make you relatable and more than just a name on an offer.
Structure the offer to fit: If you learn that there is financial stress or job loss, structure your offer to be reasonable to their needs. For example, your Realtor does some research, learns the seller is experiencing financial stress, and tells you that the seller bought the house 5 years ago and how much they purchased it for. In this scenario, the seller will need to get a certain amount to even consider an offer viable for their financial situation. Don’t low-ball; you may risk losing out on the house to someone else that offers what the house is worth.
Don’t over-complicate with contingencies: Beyond the home inspection, which you should have, limit the number of contingencies you place in your offer. Make it easy for the seller to accept your terms.
- Don’t low-ball a counter offer: If you receive a counter offer from the seller, that means you have their interest, but simply did not offer enough to meet their needs. If you truly love this home, come back with an offer that reflects the home’s market value and demonstrate to the seller that you are meeting them at least half way, and perhaps more.
In a seller’s market, it helps to have an experienced REALTOR on your side who can advise you on how to best negotiate to get the home at the lowest price. Your REALTOR will know what other homes are selling for in the neighborhood and have a grasp on how intense your competition may be.
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