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How to Negotiate with Sellers
Buying a home is one of the most important purchases most people
will make. In order to make the right decisions the first time, potential
buyers need to be prepared. Consider the following before starting negotiations:
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Be prepared
Research the housing market in the target area. Once you have information
about the general area, focus on the particular property and seller. Look
for answers to questions such as: |
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Why is the homeowner selling?
(If they're moving because they find the area undesirable, you might as
well.)
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How long has the home been on
the market? (If it has been on the market for a long time, perhaps there
are negative facts about the property that you need to know.)
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How much did the seller pay for
the home compared to the current asking price? (If the seller paid more,
find out why. Was it a general real estate trend, or did property values in
that particular neighborhood go down?)
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What is the seller's time frame
for selling and moving? Does it fit with your needs?
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Are there any defects in the
home or problems with the surrounding neighborhood? (For example, is the
roof so old that it will likely leak during the next storm? Is there a new
construction project in the area that will lead to major traffic
congestion?)
As the potential buyer, you want the advantage. While you
want answers to all your questions to the seller, reveal very little about
your circumstances. Do not give the seller personal information such as your
income, the maximum you're able to pay for a down payment or the home, or when
you want to move. Make sure that your agent knows not to reveal any such
information to the seller or his/her agent.
Also, don't let the seller see how much you want the property. If you appear
desperate, the seller then has the stronger bargaining position. When meeting
with the seller or listing agent, keep your emotions in check.
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Establish a Timeline
Find out if the seller needs to have the sale closed sooner rather than
later. If the seller is feeling pressured to sell, use that to your advantage
in negotiating. Even if you, the buyer, are the one with the deadline for
purchasing a home, don't let yourself be rushed into making concessions or a
purchase you may regret later. |
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