| Negotiating - a word that strikes fear into the | | | | Agent, keep your emotions in check. If the seller |
| hearts of most home buyers. If you are like | | | | is aware that you are in love with the home, they |
| most people, when you hear the word | | | | will have a strong bargaining position. But if they |
| "negotiating", you cringe, picturing a heated | | | | think there is a chance you will walk away from |
| confrontation where tempers flare and big | | | | the table, they will be more willing to negotiate on |
| numbers are volleyed back and forth across the | | | | your terms. Negotiating Tip #3 - Do Your |
| table. It doesn’t have to be that way. It’s | | | | Homework It’s time to go to school. First, |
| perfectly reasonable to expect the seller to make | | | | you need to make a checklist of everything you |
| some concessions while you do the same. Meet in | | | | want in a home and then prioritize the list. |
| the middle. Negotiating Tip #1 - Be Realistic When | | | | Amenities you can’t live without should top |
| entering a negotiation with a home seller, you | | | | the list and then the other items should be listed |
| need to be realistic. If the house you are looking | | | | in descending order of priority. If you know what |
| to purchase has 6 bids already, your chances of | | | | you want before you start, it will make the entire |
| getting thousands of dollars slashed from the | | | | process easier, and give you an idea of how |
| price are slim. Negotiating in these cases may | | | | much leeway you have in negotiating (i.e. if you |
| prove to simply be a waste of your valuable time. | | | | are in love with a home and it has everything on |
| This is especially true in hot markets like Boston, | | | | your list, you may be less apt to try and haggle |
| San Diego and Miami. Even in a case where the | | | | the seller’s price down)... You also need to be |
| home seller is willing to make concessions, and | | | | aware of what market conditions are like in your |
| you have a strong bargaining position, you should | | | | area. Take this simple quiz and see if you know |
| never attempt to “go for the throat”. Be | | | | the answers: 1.) Are you aware of the supply and |
| reasonable. If you know the home is priced | | | | demand statistics of home inventory vs. sales |
| $3,000 above what you are willing to pay, tell the | | | | made this year? 2.) Are you aware of what % of |
| Seller that the home is priced $3,000 too high, but | | | | total homes listed for sale actually sold last |
| that you would be willing to sign a Purchase | | | | month? 3.) Are you aware of how the total % of |
| Agreement today if the seller were to bring the | | | | homes sold last month can positively affect how |
| price down $1500. This way, it’s a win-win | | | | you structure your purchase offer? 4.) Have you |
| situation all around. The seller is happy and you | | | | assessed the best use of your cash and planned |
| walk away content in the knowledge that you | | | | to maximize your leverage? In short, have you |
| successfully slashed $1500 from the home price. | | | | prepared a Home Purchase Strategy? We |
| Negotiating Tip #2 - NEVER Show Your Cards | | | | participate in many real estate transactions every |
| Remember the old country song by Kenny | | | | month. Over time, we’ve learned a thing or |
| Rogers that goes “you’ve got to know | | | | two. Our staff would like to help you develop |
| when to hold 'em and know when to fold | | | | your personal strategy and consequently help you |
| 'em”? It’s true with Poker and it’s | | | | save thousands of dollars in the process. |
| certainly true in Real Estate negotiations. When | | | | Blake Ballew is a Business Partner with Amerisave |
| you walk into the home of your dreams, | | | | and serves 49 States and DC. Amerisave offers |
| don’t scream out, “oh it’s beautiful - | | | | FHA, VA, Alt A and Sub Prime Loans and has a |
| I’d do anything for a house like this!” | | | | $500 Low Rate Guarantee and a $1000 On-Time |
| Around the seller and the seller’s Real Estate | | | | Closing Guarantee. |