Navigating the real estate market today can be very challenging, particularly in the negotiation process for a successful home contract. With Covid-19 still on the rise, it is currently a “seller’s market” as we term it in the real estate world; i.e. there are more buyers than sellers. This disparity creates a negotiation bias for the sellers, who are more likely to get what they want out of the deal in selling their home. However, as a buyer, that does not mean that you can’t negotiate a good deal on your prospective home! It simply means that you might be in need of some key negotiation tips to better position yourself in the process. Knowledge is power.
I have found the following negotiation points to be key: the price and the terms. Specific pricing strategies are very important, but the terms are the other pieces to the puzzle that fill the whole thing out. Terms can refer to the inspection time period, repair requests, appraisals, the types of financing available, and the time period to close.
Price seems to be a pretty blatant key to negotiation, but I have found that the necessity of terms are often undersold (pun intended) to prospective buyers. In today’s market, many sellers will take a lower price that is not contingent on the appraised value or repairs over a higher offer that is contingent. I often advise buyers to take a really hard look at the home to decide if repairs could be a deal-breaker. Of course, you ought to still complete an inspection to confirm that there are no major issues, but if you can choose to forego any extra repairs and not lower the price due to the appraisal, you can transform these two items to a deal-changer for the seller.
Let’s Chat – Grace