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Get the Best Deal: Negotiating the Real Estate Purchase

The price you pay or sell your home for is based on a few key factors. The main aspect is the current real estate market. Are prices and rates sky high? How well priced the home is, as well as the price you are capable of paying are also important.

In most cases, homes don't sell for the full list price. As with anything else, there are always exceptions. For example, when the market is booming, or when the house is price below value. For most situations, homes sell for less than the asking price after negotiations between the buyer and the seller.

How much you get for your home depends greatly on the supply and demand factor of the market. In a soft market there is a lots of inventory and few buyers, which makes it possible to negotiate.

In a hot sellers market, homes often have multiple offers. This causes buyers to pay full asking price or higher to have the chance of being the successful bidder. Ask your agent how the local market is, and how long its taking to sell homes like yours.

Buyers purchasing in a development may find the builder leaves no room for negotiation. This usually occurs when the project is selling well. If your interested, find out info about recent sales within the development.

When the markets slow, developers are more likely to negotiate the final price of the property.

Find out the sellers motivation for how long the property has been on the market. See if there have been other offers. Ask why they are selling. See if they are flexible on the asking price.

A strategy used when purchasing is to offer slightly lower than the asking price, a smart buyer would rather take a certain closing at a lower price, over an uncertain offer from another buyer.

Your negotiations on price should begin before you write up an offer. The first discussion should start verbally between your agent and the listing agent. Have your agent see if there are any other interested buyers. Make them aware you would like to be kept informed if any offers are made.

The next important step is to call your broker and get a "pre qualification letter." Proof of financing is favorable when purchasing, especially in a multiple offer situation. Make sure you have the letter backing you in such situations, as every little bit helps.

The elements of an offer include purchase price, financing contingency, deposit amount, how closing costs are shaped, pest control inspection, repairs, etc..

It is preferable to have the offer presented by the buyers agent personally to the sellers and their agent. Buyers shouldn't attend this as their presence might deter the sellers from asking questions, or raising objections.

Keep in mind when perceiving the offer, virtually everything in the offer is negotiable. A seller can request to increase things such as a higher deposit amount. 90% of financing requires that the buyer and the property itself qualify for Private Mortgage Insurance, also known as PMI. PMI protects the lender in case of default on the mortgage.

Sellers should show their property to prospective buyers even after they've accepted an offer. Sellers can stop showing after the buyers contingencies are removed from the purchase contract. A sale isn't pending until the purchase agreement and all counteroffers have been signed and accepted by all parties involved.

About the Author: Published by Joe and Colleen Lane, Realtors®. The Lane Real Estate Team services Tri City Wa Real Estate, Kennewick Wa Real Estate, Pasco Wa Real Estate, Richland Wa Real Estate, and surrounding Southeastern Washington Communities.

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