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One potentially major aspect to buying a home that many buyers and sellers don´t even consider is the negotiation. Most first time buyers and sellers enter the process thinking that the transaction is cleaner cut then it really is. A buyer submits an offer and it is either accepted or turned down. Simple. But it´s actually a bit more complicated then that.
If a buyer submits an offer that is close but just a bit too low, the seller can submit a counteroffer, which will most likely be a bit more than the buyers bid but below the original asking price. Most home sellers build in some "negotiating room" into their asking price so they feel comfortable going down a bit from their asking price if need be. Let´s take a look at some tips for both buyers and sellers when it comes to negotiating.
In negotiating, knowledge is king. The more the buyer and seller know about each other the more of an advantage it is for each of them. If the buyer knows that the seller is in a tough economic situation and is very motivated, the buyer is unlikely to come down on his offer much since he knows the seller is desperate to sell. But two can play at that game. If the seller knows that the buyer is extremely interested in the home and is willing to raise their offer to get it, they will play hardball themselves and not budge on their asking price, knowing that the buyer will be more than willing to pay more if they are forced to.
Getting this inside information isn´t easy. The sellers and buyers communicate with each other very little, so most of the conversation goes on between appraisers, real estate agents and lawyers. It´s through these official channels that someone might let something slip that will tip off the other party and give them a negotiating advantage. If you feel like you´re headed for a long negotiation, talk to those in the know and you might find yourself in a good situation.
Another good tip is to not get rushed into any decisions. You´re going to have, at minimum, a real estate agent advising you and maybe an entire fleet of appraisers, lawyers, family members and others who all might have a steak in the pending transaction. Don´t be rushed into making any decision that you don´t feel is right. Buying and selling a home is way too important to make the wrong decision.
Don´t be afraid to ask for help. If this is your first time negotiating and you are stuck in a battle with a seasoned veteran, don´t be afraid to admit you might be in a bit over your head. Your real estate agent is there to help you, and in some states, you´re required to hire a lawyer. He or she can help you through the process as well and can make sure you aren´t taken advantage of. During the negotiating process, the other side is going to do everything they can to try to pry as much information from you as possible. They will try to figure out if you´re a motivated seller or not and how in love with the property you are if you´re a buyer. Play your cards close to the vest and try not to reveal any extra information then you have to. This is the biggest reason why most people seek some extra help when it comes to negotiating. If it is your first time, don´t go into battle unprepared.
Think of negotiating as a poker game, but with much higher stakes. You´re dealing with hundreds of thousands of dollars here and both sides are going to do and say what they want to get their way. Make sure you´re prepared to start negotiating when the time comes and if you feel overwhelmed, don´t be afraid to ask for help. The difference between getting that beautiful piece of Sarasota FL real estate for a song and paying too much might be decided during negotiation. Don´t let the Sarasota home of your dreams slip away because you were hoodwinked during negotiations.
GBrey
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