Life in Scottsdale

Negotiating With A Home Seller

Let Your Gilbert Realtor Guide You. He or she will guide you towards offering the initial price. It’s always best to let your Gilbert real estate agent present an offer without your presence since they have been trained in negotiating techniques and can detect for signs of an urgency to sell. However it is always your decision to determine an offer price with any conditions to the offer. These following suggestions will help guide you through the negotiating process.

Be Aware of Conflicts of Interest

All too often home buyers will drive-by a home for sale and contact the real estate agent listed on the for sale sign. Realize that the contact agent is probably the listing agent for the seller and generally are obligated to represent the interests of the seller and not the buyer. This conflict of interest could be a disadvantage for you as the buyer. Most often it is best to hire your own real estate agent who will exclusively represent your interests. Hiring your own Gilbert Realtor costs you nothing since the seller pays all sales commissions.

Loan Prequalification and Preapproval

Prequalitfying for a mortgage loan gives you a negotiating advantage. A loan preapproval will give you an even greater advantage. A preapproval sends a signal that you are credible buyer that hasten close of escrow. Depending upon the seller’s urgency to sell, they may accept your lower offer price versus that of another buyer who has yet to be approved for a loan. Read the difference in prequalification versus preapproval.

Determining Your Initial Offer

You first need to know what a reasonable market price is. Have your Realtor prepare a Comparable Market Analysis for similar homes previously sold in Gilbert AZ within the targeted neighborhood. An appraiser will only generally consider comparable sales within the previous six months. It is important to know whether asking prices are trending up or down.

Consider Seller Motivation

Consult with your agent to try and determine the urgency of the seller to consummate a sell. The length of time the home has been on the market could be key. If it’s been for sale for a long duration, the seller is more likely to consider concessions. The sale could be motivated by a divorce, a possible foreclosure or a job transfer. The seller may have purchased another home that is nearing escrow close and they may be stuck with two mortgage payments. On the other hand, a seller may very well be willing to “wait it out” until they are offered the asking price.

Key Strategies To Consider

When previewing a home, do not show any positive emotion. If the owner is present, be courteous and friendly but do not demonstrate your excitement of any features. You don’t want to give the seller any hints that you are anxious to buy his or her home.

Consider being flexible with your moving dates. The seller may need some extra time after closing for convenience. Considering a “leaseback” for a short time may give the seller access to funds from the sale to accommodate closing on another home they may be purchasing. If the situation fits, the seller may consider a smaller offer because it fulfills convenience. A word of caution…do not enter into a leaseback of more than 30 days because the lender may consider you an investor and could result in a higher interest rate.

Making Your Initial Offer On A Gilbert Home

Rarely is an initial offer accepted by a seller. Therefore consider offering a price that is below what you are actually willing to pay. Typically the seller will make a count-offer and if you get lucky that counter-offer may be well below what you were willing to pay.

Always make your offer contingent upon a home inspection. If a home inspector uncovers construction or repair problems, it gives you the opportunity to rescind the offer or gives you an opportunity to renegotiate.

Conclusion

The goal is offering a price that is reasonable enough to get the home at a price that is less than you are actually willing to pay without insulting the seller. You want the offer to be close enough that the seller isn’t willing to lose the sale to you as a strong buyer.

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This page was last modified on 30 January 2012 at 17:13
Gilbert Arizona (AZ)