You’ve found the home of your dreams. But can you get it within your budget? Here are my top “dos” and “don’ts” for negotiating the best price.
Do: Have your buyer’s agent provide you with a list of recently sold comparable homes in the area and give you an idea of what fair market value is for the home. Be sure you also have a sense of how many comparable homes are currently for sale now (i.e., Is this the only home that suits your needs, or are there many you could pick from that you like equally?)
Don’t: Worry too much about the seller’s personal situation. It’s easy to get wrapped up in determining why someone is selling a home, yet this doesn’t always reveal how good a deal you’ll get. For example, people often assume they’ll get a “steal” on a property if the owners are getting divorced, yet it’s not always the case. I’ve seen situations where the couple rejects a strong offer because they simply can’t come to an amicable agreement on an acceptable price, or they simply need too much money to go their separate ways.
Do: Decide on the top price you’d pay before you start negotiating. It’s easy to get carried away by emotions in the midst of the back and forth of bidding. If you’ve already made a decision beforehand, it’s a little easier to keep from jumping to a higher number.
Don’t: Give sellers a list of things you think are wrong with the house to justify your offer. It’s easy for sellers to become offended by this and respond unfavorably.
Do: Find out what other factors are important to the sellers. For example, perhaps the seller would consider a slightly lower offer for a faster close date. Sometimes it’s not the highest price bid that wins out. For example, I’ve had investor clients who got great deals on multi-family homes because they were cash buyers, so the seller didn’t have to worry about accepting an offer only to have the buyer’s financing fall through.
I hope you’ll find these tips helpful. And of course if you or someone you know is looking for a home in the Boston suburbs, please call me at 508.904.4967. I’d love to be of assistance.
