01 Dec 3 Things a Buyer Can Negotiate
Know Your Market
Let’s face it, in order to get 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.
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 a “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. It’s imperative to remind them of the shortcomings that you are willing to overlook as long as 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 times 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 powerful presentation, you laid the groundwork for the seller making some concessions on things that may need to be updated, upgraded, repaired, 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 that 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 concessions 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 negotiation 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
It’s important to know the rules. There are limits 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 lower price. Just like you, the buyer, the seller is only concerned with HOW MUCH MONEY WILL I NET. Most sellers are completely confused and feel taken advantage of when closing costs are requested on cash deals. This might lead them to shut down the negotiations.
A great negotiator can assist you in buying under market value in many cases. A poor negotiator can cost you thousands!