After a long and tiring search, you have found a home for you and your family. You want to write an offer to the seller. Knowing how much you’ll offer according to how you’ve evaluated the home is essential as you might lose the home.
If you have viewed other homes in the exact location as the one you’ve chosen, you’ll know how much to offer after you make a comparison. The home might have something that influence’s the price difference between it and the other homes.
If you don’t know the market value of such a home, you’ll end up lowballing or overpaying. Lowballing is when you make a drastically low offer, and the seller feels insulted. They will immediately turn down the offer without even counteroffering. When you overpay, you end up regretting it in the future.
It's hard to overpay for a home these days unless you are paying cash because every home that has a loan as part of the purchase, requires and appraisal to protect the lender. This protects you too to make sure you haven't over paid.
Know the type of market you’re dealing with. A sellers’ market is characterized by a shortage of homes, and the demand for homes is high. Competition for homes is high, and you have to compete with other buyers to buy the home. The price might be high if the seller has been offered multiple bids, each higher than the previous one.
If it’s a buyers’ market, the homes for sale are many, and the demand for homes is many. Prices can be lower, and you can offer an offer lower than the asking price. The seller will start a conversation for negotiations or even accept your offer. This will happen if the home has been on the market for a while or the owner is hurrying to sell.
You might be devastated if your offer is rejected. Do not show it emotionally. Walk out of the deal first and re-assess yourself. If you like the home and the seller knows it, they’ll know that you’ll be back with another offer, but do not do this immediately. They might also have received higher offers than you, and they’ll end up selling. Have other homes in mind if this happens.
An agent can be a great asset when searching for a home. They identify homes that suit you in a location you want and help you table an offer. Agents also have good negotiating skills from their experience in selling and buying homes. They can position themselves as the buyer and the seller.
If you cannot buy the home, search for another home in the location you want that suits your taste. Do not get emotional when the home is sold to another buyer. And never rush to make an offer without having the home inspected and without knowing which market you’re dealing with.
You might decide and end up regretting in the future if the home depreciates excessively in value or develops problems that will dent your pockets.
I think one of the biggest values I bring as your agent is the ability to negotiate the deal on your behalf from a place of strength and non emotion. This means you are most likely to get the property at the best price and terms.
Not all agents are amazing negotiators. When you hire a pro, make sure that your agent is an expert negotiator, as that's one of our most important roles.