Female broker consulting young couple in realtor office
So you’ve found your dream house and you’re ready to make an offer. You want to make on that fits your budget and also appeals to the seller. So what do you do? How do you pick the perfect starting point?
Below are 4 tips that will help you make your offer a pleasing one. Though these tips won’t guarantee you’ll snatch up the house of your dreams, they will help increase your chances.
1. View listing prices as starting points. Unless someone has a home listed as “firm” (which is a rarity), listing prices are a place to begin negotiations.
When most sellers put a home on the market they’re thinking about how much they have to get for the house, and then adding a little cushion to allow for negotiations.
2. It’s important to talk with your real estate agent and look at comparables. Comparables are similar homes that have recently sold in the area and they will give you a good idea of what the home you’re eyeing is worth.
If you’re thinking about submitting a low offer then you and your agent need to be on the same page. Low offers can get negotiations off to a bad start. You and your agent need to agree on your strategy so that they can confidently go to bat for you when needed.
3. Talk with your realtor about asking for repairs or special requests. Reasonable requests are common in real estate deals. Sometimes buyers simply want the carpet replaced or an incomplete project finished.
However, special requests are risky when you’re in a competitive market where bidding is going on. It’s best to buy a property as it is rather than lose it to another bidder.
4. Asking for covered costs such as the seller paying the closing costs is the same as asking for repairs or making requests. In a competitive market, sometimes these little things aren’t worth discussing if you’re not the only one who wants the property.
If you do decide that you want to ask for closing costs to be covered, make your offer a strong one. A low offer, plus asking for extras will get you off to a bad start with the seller.
Let’s review:
- The listing price is a starting point for negotiations. Stay within a reasonable range of the listing price when making an offer.
- Make special requests only when you’re confident that your contract is the only one on the table.
- Ask for costs to be covered if you’re making a good offer and no one else is trying to outbid you.
- Coming to an agreement is a give and take process. Be willing to give a little here and there- as you’re expecting the seller to do the same.
Your realtor is your greatest advocate and your most reputable source. Let them help guide you through the process.
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