By: Tony Delisi RE/MAX Unlimited Northwest 847-471-7177
OK, you finally found a home you love. Now comes he big question…how much should you offer? In this article I will reveal what will help you get great deal on that dream home.
No Emotion Please
If you can, try not to fall in love with a particular home. The more you love it, the more likely you are to over pay for it. Try to see a home as an investment until your offer is accepted. Then, you can fall in love and get excited. You should deal with a Realtor who lets you know there are lots of homes to choose from and does not try to rush you into purchasing any particular property.
Guesses Cost You Plenty
Some buyers just guess how much to offer. They say things like, “It’s listed for $250,000. I always offer 20 percent off, so I’ll offer $200,000. The problem with just guessing or taking the advice of a family member who got a great deal in another state is that every home is priced differently by the current owner. Some price high and are waiting for you to ask for a serious discount. Some price low and don’t want to dicker. Some just didn’t know the correct value of their home when they listed! To know what the property is worth, you need a professional market analysis.
Buyers Market Analysis
A good Realtor will quickly do a buyers market analysis for you. You need to have this quickly so you can make an offer before the home sells. I have an IPad that is hooked to the Internet 24/7. This allows me to do a market analysis for my buyers immediately no matter where we are. This is the level of service needed in today’s fast market. Once you have a professional opinion of market value, not just a guess based on opinion, you can confidently decide how much to offer for your new home.
Making Your Offer Stronger
Your Realtor should help with ways to make your offer stronger. Besides money, what does the seller want? Maybe it is no contingencies. Maybe it’s a quick close. Maybe it is post closing procession to help them move on a convenient day. Maybe it is more earnest money than usual to make them feel secure. Maybe it is agreeing not to ask for any inspection items to be paid for by the seller. There are lots of things besides money that can make your offer very attractive. A good Realtor will help you structure your offer in the best possible way.
Negotiation Skills Matter
Be sure you are using a Realtor with good negotiating skills. I have taken many hours of training but this essential skill has never been taught. I believe it requires years of successful experience to be a good negotiator. A Realtor with superior negotiating skills can help you buy for less or sell for more. I am a very experienced and expert negotiator. I owned an automobile dealership and my consulting company taught negotiating skills to more than 4,000 companies including Volvo, General Electric and Culligan. I have found that these skills and experience have given my clients a serious advantage with offers in many cases.