The Secret to Success for Homebuyers
One great way that buyers can secure a fantastic deal in this market.
“How do I get the best deal possible?” I hear this question all the time. The short answer is: the key to getting a good deal in the marketplace right now is understanding what sellers are looking for.
Typically, there are six negotiable terms in an offer. There are also some money items, but the terms are what the seller will focus on. The money is a big piece, but you can get away with paying a little less if you offer excellent terms. The six negotiable terms are purchase price, earnest money, closing date, down payment, contingencies, and inspections. Usually, if you want to get a good deal on one of these items, you have to give something else up. Therefore, if you want a lower price, you might have to agree to a longer close or shorter inspection period.
"The key to getting a good deal is understanding what sellers are looking for."
Let's say you want to offer 95% of the list price. With a price that aggressive, you’ll need to offset that decrease with some substantial terms. Maybe you increase your earnest money by a significant amount. Maybe you're going to waive your inspection so that the sale goes off without a hitch. Now, one of my personal favorites works when your seller needs to go find a home. You can get a very good deal by allowing them more flexibility with their closing date.
This strategy can work especially well with sellers who have been on the market a long time since they might be getting desperate. Move forward confidently, and don’t budge once you lay out your terms. If the seller wants to get things over with, they will be more willing to negotiate on price in exchange for some other terms.
Of course, this is just one strategy you can use. If you have any questions or would like to learn more, please call or email me. I am always willing to help!