3 Things A Buyer Can Negotiate
- Know your Market: Lets face it, in order to the very best deal possible, you need to know what the market value is. A savvy buyer and a professional agent are going to be market experts. They will be able to identify what market value is and then negotiate to get BETTER THAN MARKET VALUE.
- Present your knowledge to the Seller: Negotiating begins with the presentation of the offer. Simply putting an offer in on a property with no "Set-up" is going to leave you with limited leverage in the negotiation and many times you will be perceived as "shark" simply trying to take advantage of the seller. A powerful offer presentation will tell your story and humanize you to the seller which allows them to be more flexible FOR YOU, NOT YOUR COMPETITION.
- Let them know you love the home.... but: In order to negotiate the BEST PRICE, you have to bring the seller back to reality. The seller knows you like the property because you put an offer in. Its imperative to remind them of the short-coming that you are willing to overlook as longs the value makes sense. They will recognize that you are buying a property that you like but it also has to make financial sense.
- Obtain and Maintain Leverage during negotiations: In EVERY negotiation, there are time when the leverage shifts. Learn the strategies that will allow it to shift in YOUR FAVOR, and you can negotiate with TOUGH SELLERS and get the best price.
- It starts with the presentation: When you set up the offer with a power presentation, you laid the groundwork for the seller making some concession on things that may need to be updated, upgraded, repaired or replaced.
- Changes vs Cash Back: Once you are close to where you want to be financially, you can refer back to those items. Most sellers know there are things not EVERY buyer is going to like in their home. Sellers that stop negotiating on price will often be willing to move more on repairs etc.. that they know could come up in another negotiation.
3. Closing Costs
- The surefire price reduction: Sellers are not surprised when a buyer asks for closing costs. Similar to concession the closing costs offer a good avenue for the savvy buyer to negotiate a better price by minimizing the cash they have to bring to closing. Closing costs are a great negotiating tool, whether you need them to do the closing or not, as long as you know how to present the offer.
- Know the guidelines and limits: Its important to know the rules. There are limited to what you can and can not ask for and your Agent or mortgage lender can educate you on these important items.
- The biggest closing cost mistake: Avoid asking for closing costs on Cash Deals. Some would argue that it makes the seller feel like they are getting a higher price. Just like you, the buyer, the seller is only concerned with HOW MUCH WILL I NET. Most sellers are completing confused and feel taken advantage of when closing costs are requested on cash deals. When they are confused they shut down in the negotiations.
A Great Negotiator can assist you in buying under market value in many cases. A poor negotiator can cost you thousands. That's why its important to reach out to The Arend Team when you begin the process, as we have the people and strategies in place to make sure our clients ALWAYS get the best deal possible on the exact property they are looking for!