This is it! This is the house you want to make your home. You have searched and searched and now you have found it. Now what? Here are a few ideas on how to get a "good deal" on that house. Remember, a "good deal" involves more than just the price. While the price is likely one of the most important aspects, you must also consider possession date, what is included, conditions, just to name a few. Here are a few tips.
- Have your REALTOR complete a CMA (Comparative Market Analysis). Thsi will give you a good understanding of what similar homes are selling for in the area.
- Set a maximum price you are willing to pay for the home. That said, while you want to be quite firm on this, you must also consider what happens if you get "close" but aren't quite there on the number. For example, say the house is listed for $500,000 and you decide that $587,500 is you top dollar. You offer $580,000, the Seller counters at $595,000 you go to $587,500 and the Seller counters at $590,000. You must decide whether you are willing to lose your dream house for $2,500. Remember be happy where you live. The home is more important than a few dollars.
- Remember that the Sellers is under as much stress in this process as you are. Maybe more because they may have an emotional attachment to the home.
- Be realistic. Making a very low offer can backfire. Many times a really low offer will make the Sellers dig in their heels and not move as much on the price as they would have if the offer had started at a reasonable price.
- If there are repairs that are needed, you can try to make them negotiating points. Make your offer with a term that the Seller fixes something and the repair is included in the price. If necessary, you can take that out of the offer later to make it more attractice to the Seller without adding to the price. The same can be done with the inclusion/exclusion of appliances.
- Remember that a good negotiation is one where both sides are happy with the deal. The price, terms and conditions are all part of it.
- Make sure all the papers are filled out and signed properly so there are no problems later.