How to Negotiate with Sellers
Buying a home is one of the most important purchases most people will make. In order to make the right decisions the first time, potential buyers need to be prepared. Consider the following before starting negotiations:
Be prepared
Research in detail the housing market in the target area. Once you have information about the general area, focus on the particular property and seller. Look for answers to questions such as:
1. Why is the homeowner selling? (If they're moving because they find the area is undesirable, you might also.)
2. How long has the home been on the market? (If it has been on the market for a long time, perhaps there are negative facts about the property that you need to know.)
3. What is the seller's time frame for selling and moving? Does it fit within your needs?
4. Are there any defects in the home or problems with the surrounding neighborhood? (For example, is the roof so old that it will likely leak during the next storm? Is there a new construction project in the area that will lead to major traffic congestion?)
5. How much did the seller pay for the home compared to the current asking price? (If the seller paid more, find out why. Was it a general real estate trend, or did property values in that particular neighborhood go down?)
As the potential buyer, you will want the advantage. While you want answers to all your questions to the seller, it is important to reveal very little about your own circumstances. Do not give the seller personal information such as your income, or when you want to move, the maximum you're able to pay for a down payment or for the home. Make sure that your agent knows not to reveal any such information to the seller or his/her agent.
Also, when meeting with the seller or listing agent, keep your emotions in check. Don't be overly enthusiastic showing how much you want the property. If you appear too much so, the seller will then have the stronger bargaining position.
Establish a Timeline
Determine if the seller needs to have the sale closed sooner rather than later. If the seller is pressured to sell and close quickly, use that to your advantage in negotiating. Also, if you, the buyer, are the one with the deadline for purchasing a home, don't let yourself be rushed into making concessions or a purchase you may regret later.
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Amy
Meller
William Raveis Real Estate & Home Services
361 Boston Post Road
Sudbury, MA 01776
Phone: (978) 440-8686
Fax: (978) 759-0232
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