When you find your dream home a lot can happen between the first offer and closing day. Majority of the time when you submit an offer, the sellers are going to counter!
Purchasing a home isn’t as simple as some people make it seem. Some negotiations can go on for days before both the seller and buyer can come to an agreement.
Counteroffers happen most of the time during a real estate deal but how do you as a buyer come out on top?
Why did the sellers counteroffer?
As a home buyer, when you make an offer below list price, the sellers can either choose from 3 options, those options are accept, reject, or counter.
Sellers may want to change the proposed closing date, they might want to change the inspection period time, but more commonly they want to renegotiate the price.
Another reason for counteroffers are appraisals. If the appraisal of the home comes below the agreed-upon price, it will affect how much the mortgage company will lend to the buyer.
Power of negotiating
Remember the phrase “knowledge is power”
As a experienced real estate agent and top producer, I try to help my buyers as much as possible. I will do all the digging and capitalize on advantages during a negotiation.
As a buyer, you and your agent should do as much research as you can. Every little thing you find can be a negotiating tactic. Here are a couple of key questions to find out about each home:
- When did the sellers last purchase the house and how much did they pay for it?
- Have the sellers done any upgrades since they moved into the home?
- How much is left on their mortgage?
- Are they in a hurry to move?
Also, during an inspection period if you find problems on the inspection report go back to the negotiating table and let the seller know what you found on the inspection report. Find out how much it will be to fix those things and knock it off the sale price of the home!
Most importantly, establish a baseline! As a buyer you need to know when to walk away from a deal. With me by your side, together we can make counteroffers our friend and get you into your dream home!