BY: Tony Delisi “The Results Guy” RE/MAX Unlimited Northwest
WATCH WHAT YOU SAY
My first advice is to be careful what you say. Even though your agent is on your side and represents you, they may be unconsciously affected by what you say. Definitely, if the home owner is present for your showing or the selling agent is, be extra careful. Saying things like. “I love this” or “This is perfect for us” cn cost you in the negotiations.
LET A PROFESSIONAL SHOW YOU WHAT THE HOME IS ACTUALLY WORTH
Before you make any offer, be sure your representative has done a thorough market analysis of current listings, solds and expires to determine the actual market value of the home you want. The county assessor will also have a value as will real state sights like Zillow and Trulia. Take all of this into consideration when you determine your offer.
LINE UP A STRAW HOME OR TWO
Try to find a home or two that is very similar to the one you want to purchase but is priced lower. During the negotiations, I often tell the seller that my client likes their home but is considering the one or two you picked out. Often the fear of losing your offer outweighs the hope of gain the hope to get from the sale. In the hands of a skilled negotiator, this can be a very powerful tool.
HOW STRONG IS YOUR OFFER?
If your offer has a lot of conditions, it is weak but if it is a cash offer or if you have a pre-approval for the mortgage and if you can be flexible on the closing date, your offer is string and that makes it easier to negotiate a better price.
HOW IS THE MARKET IN THE AREA?
If houses are selling quickly and there is less than a 4 month supply of similar homes, it’s a sellers’ market and it will be tougher to get a better price. Ask your Realtor to report to you the number of months inventory for sale, number of days the home has been on the market and the average number of days to sell a similar homes. I also report the average amount similar homes sold from list price. This is all important data that will help you buy with confidence.
HOW MUCH DO YOU LOVE THE HOME?
Sometimes you just love a home enough that it’s worth paying a little more than you hoped for it. Sometimes we all buy a little with our heart and not with our head.
USE AN EXPERIENCED NEGOTIATOR
The art of negotiation is something that takes a long time to learn to excel at. Agents ho only sell a few homes per year or do not come from a sales background may not have the subtlety required to get a great deal or the ability to read the other side. I strongly advise you to use an experienced negotiator as your representative and one who you are comfortable with. If you like their style, chanced are the seller will too. I am proud to say that I am a great negotiator. I have owned an automobile dealership and a very large RV dealership. I have taught negotiating to thousands of companies in several countries and I am very confident I can negotiate the best deal possible for you.