visit the homes you’re using as comps before deciding on a price for your offer. The conditions of these properties must be taken into consideration. For example, if your prospective home — the target home —has additional features that the comps don’t have, then you need to factor that in for the price quote. It doesn’t need to be a “secret” that you did some research on comparable homes. In fact, you should mention the comps during the negotiation. Why? It will give the seller and the listing agent the impression that you know your stuff. You did your due diligence by doing your homework ahead of time (research), and this will only strengthen your bargaining position. Hiding the fact that you studied comparable sales, or worse, failing to do this altogether, is a mistake that can weaken your bargaining position, mark you as vulnerable or a “target” to be taken advantage of, and cost you in the end. A purchase offer can evoke different responses from the seller. First, the seller might accept your offer as is. Second, the seller might counter the offer by demanding changes (making a counteroffer for your review). Third, the seller could reject your offer altogether, coming back with a totally different counter proposal. How does negotiation play into this? Essentially, knowing how to negotiate, and having a skilled buyer’s agent on your side, will get you the best deal possible. It will also help you to deal with the seller’s response (acceptance, counteroffer, or rejection) strategically and effectively. First, know the maximum amount that you are prepared to spend on this home. If you’ve persuaded the seller to come down from the original listing price (based on the comps data you’ve acquired and shared), but now the seller comes back with a counteroffer, you, with the guidance of your agent, will need to determine how much you want the home and how badly
201
Powered by FlippingBook