Samantha Smith with D&B Real Estate provides some great tips on negotiating prices and improvements. You certainly don't want to provide a 'low ball' offer on a home you TRULY want. Avoid time wasting, get the home at the right price, and do it with a Realtor that knows the area, knows their responsibility, and comes highly recommended.
Samantha Smith is THAT Realtor in the Lake Ray Hubbard area!
Who Pays Full Price? No one! That's right, our society & in our current economic times, No One wants to pay more than its Value regardless of the product. When you buy bananas for 49 cents a pound at one store and see them for 39 cents a pound at another store, it's not the ten cent difference as much as it is about you Over Paying.
Home Buyers are no different and it seems like the natural way to start the negotiation process is to offer less than the asking price for the home. However, with the market making a turn upward, be wary of "low balling" and submitting an outrageously low amount, many Sellers are now receiving Multiple Offers on their home.
Having the Seller knock a few thousand dollars off the sales price sounds good, but in actuality, it won't make much difference in your monthly payments. However, a buyer who only has enough available funds for down payment and closing costs will have to live in a home exactly the way it is until they've saved more money to make their desired changes/repairs. Instead of lowering your offering price, how about having the Seller take that money off in other areas like the Home's Condition or Seller Concessions, could make a big difference in your pocket book.
Let's say you found a home that needed $5,000 worth of improvements and the seller would lower the price by that amount. Great, your purchase price is lowered BUT financing those improvements with a separate bank loan will result in you having higher payments due to a higher interest rate and shorter term than your mortgage.
- INSTEAD, you could Offer Full Price and ask the seller to make your desired improvements prior to closing. This will result in lower monthly payments based on today's low mortgage rates and 30 year term.
- OR negotiate with the seller to pay that amount of your closing costs, which then means you get to check your saved money & now have the cash to make the improvements.
When buying a house, especially in today's roller coaster market, remember the saying "there's more than 1 way to skin a cat". By offering Full Price, many Sellers are more apt to consider concessions regarding condition or terms which can be balanced to affect the value of the property.
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