You and your agent’s negotiating strategy will depend on the current housing market; for example, in a buyer’s market, you will have a natural advantage to get the home you want for a great deal. Discuss with your agent, of course, but you could, for example, put in an offer well below the asking price, and/or demand certain home repairs as a contingency; and/or ask for the seller to pay the closing costs. However, in a seller’s market, you’re at an automatic disadvantage. Now you’ve got competition. Your best bet is to offer close to and sometimes full or even over the asking price assuming the value is there and it's still within your budget. Remember the rule is to know and stick to your budget. I will add this tip: Find out why the owner is selling. You can have your agent ask gently (and subtly) on your behalf to reveal the reason behind the sale. You might uncover a motivated seller who needs to move quickly and therefore is more likely to accept lower-than-asking-price offers.
DON’T Be Surprised by Multiple Offers.
Expect some competition, especially in a seller’s market. Other buyers might be interested in the same home you are, picturing themselves and their future living there. Sellers often consider multiple offers at the same time, and will make a final decision based on the best offer — for them, not you.
So how do you make sure your offer stands out?
• Be financially prepared. If you’re already pre-approved for financing, your offer is automatically more attractive to the seller. This is a guaranteed method for gaining the upper hand over other offers.
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