How to negotiate the best price when buying or selling your house in Atlanta?
Weather you’re a buyer or a seller, you have the same goals when it comes to real estate. That is natural and reasonable, but what are the steps you need to succeed? Selling your home is a complex issue because all houses are unique. Both parties – buyer and seller – want to feel that the result favors them, or at least represents a fair balance of interests. The truth is, there is always a little bluff , some give and take, and neither side gets everything they want. So, how to develop a strong negotiating position, which will help you get the most out of a transaction? Experience shows that there are five basic keys that will determine who wins at the negotiating table.
What does the market say?
The market determines whether we are in a buyer’s market, seller’s market or a balanced market where the number of home available for sale are very similar to the number of home buyers. If possible, you should position yourself based on the market conditions, if you are selling your home and not many buyers are looking for homes, you are in a disadvantaged position and the buyer obviously as has a big advantage.
1. Because all properties are unique – it is very possible that when you sell your house in a buyer’s market, you may have an advantage if your home is located in a desirable location. For example, if you have a home in a desirable neighborhood with few sales, you may be able to get a better deal then elsewhere. Or, if you are a buyer purchasing your home in a Seller’s market and you can close in ten days, that could be an important point of negotiation when it comes to an owner who just got a new job in another state.
2. Who has the advantage? If you are on the first page of the local newspaper because your business went bankrupt – and the buyer knows it, you have little influence on the negotiation process. Alternatively, if you are six buyers competing for the same property, forget about purchasing that house for the price you had in mind; more than likely the owner will accept the highest offer and offer that suits him the best.
3. What are the details? Most buyers and sellers pay attention to the price of the house, but a real estate transaction is much more complex than the price that is listed. Consider two identical properties that have been sold for the same price $ 450,000.00 in the Atlanta area. The houses are identical, selling prices are the same, but are the contract the same? Maybe not. For example,Seller one accepted the offer for that price, with the following conditions: prior to closing the seller has to do the following repairs: replace the roof, paint the exterior and cover up to 2% of the closing costs, while the second seller had to do nothing prior to closing. This shows that the number two seller was the one who gained a greater advantage.
4. What about the funding? Real estate transactions involve an exchange – Houses for money. We know that the house is there, but what about funding? There are several factors that influence the issue of money:
- Is the Buyer approved or pre-qualified by a lender? Even if you are qualified for a loan, it does not necessarily mean that you are guaranteed to make your home purchase. Other factors such as a loan can be rejected because of a problem of valuation, or a problem with the title of the house or some other defects are found when making a survey of the property. But when a buyer is “pre-qualified” or “pre-approved” at least they have an idea of their ability to finance a home and know they can qualify for certain loan programs and certain amounts. The result is that the pre-qualified buyers pose less risk to the owners that a buyer who does not have an approval letter from a lender. If the seller accepts an offer of a non pre-qualified buyer, it is possible that the transaction might fail because the buyer can not get a loan. Meanwhile, the owner may have lost the opportunity to sell to a qualified buyer. The interest rate determines the amount of buyers and thus determines the real estate market. The greater the number of buyers, the greater the possibility of a seller to sell his house at a high price. Moreover, when interest rates are going up they usually slow the real estate market and that is not good news for buyers and sellers.
- It used to be that the down payments were a big problem for buyers for the first time, but not anymore. For those with good credit, loans with a 5 percent or less by now are widely available. In fact, there are programs with 100 percent financing, now available from conventional lenders.
- Down payment requirements have been reduced and this is good news for buyers and sellers.
5. Who has experience? There are many home buyers who use the services of the agent who is listing the house, the real estate agent that is listing the house is representing the seller and his goal is to get the highest possible price and the best possible terms for the seller. Picture yourself in a fight, your opponent has a black belt in martial arts and you have nothing, who do you think is going to win the fight? It’s very important, if you are buying a home, use the services of a different agent who is representing the seller. Normally the agent who represents you have no cost to you, the agent who represents you receive payment from the broker that is listing the house.
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Real Estate Broker serving the Atlanta Metro Area, for over 12 years. If you are planning to buy or sell your home in Atlanta, call Telmo Bermeo at 404-855-3070
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