Straight Talk! Negotiating a Contract in 3 Easy Steps
TRUTH – NO ONE can predict exactly what the Seller of a house is willing to negotiate when you are putting together an offer on your Dream Home! In fact, if you were to ask the Seller at different periods during his listing history, that number might change. It could even go up in a multiple offer situation. Negotiating a contract is never easy but there are things that you can do to ease the burden.
Keeping that in mind, you really need to work with an experienced agent that will look for signs of negotiability and how to offer the best price and terms to get the YES you are ultimately looking for.
#1. What is the listing telling you? Some listings can be written with telltale signs that the seller might be highly motivated to sell (the listing agent might even include this). Reviewing its listing history, and days on the market might also give a clue to a seller’s poker hand. Stepping it up a notch, look in public record to see what they paid for it and what their mortgage is. You can even see if there is a potential foreclosure looming.
#2. Utilize a Real Estate professional that is going to probe and interrogate the listing agent. They should be able to gauge at least somewhat where the seller is at. Look at response times to questions. Are they getting back to you in 2 minutes because they are extremely efficient or they really want/need a contract? Make sure a full market price opinion is completed to get an idea where the value is actually at. Asking the simplistic question of “Is it worth the asking price?” is actually invaluable. Your real estate professional should be following the 4 things!
3. I cannot say this enough to my customers. Go with what you are comfortable with. Buyer’s remorse is a VERY real thing and you need to understand that this is a highly substantial purchase. You have to be comfortable with the ticket price. Stick to that comfort level even if you really want to go higher.
Ultimately, if a seller really wants to sell, and a buyer really wants to buy (as long as each side is reasonable and rational), the price will usually land very close to what each side is expecting and happiness is achieved!
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Written By Matthew Allen MS GRI
Broker Associate & Funder Realty International/The Allen Real Estate Team