Plenty of forces,from overly cautious lenders to inaccurate appraisals,are wrecking real estate deals right
now. But one of the biggest roadblocks to getting a house sold these days is the disconnect between buyers
and sellers.
In general, sellers have gotten more realistic in pricing their homes than they were right after the housing
bubble burst, but agents say that many still don't grasp how much they must concede to close a deal. And
buyers are still spraying lowball offers around in hopes that sellers will be desperate enough to bite.
Take such unreasonable expectations, multiply by two, and what do you get? "A standoff".
With the busy summer home-sale season drawing to a close, there's little time to waste. Whether you're
trying to unload your place or land a new one, follow these do's and don'ts to negotiate the best deal--
fast.
If you're buying
Don't say: "I'll pay 85% of your asking price and not a penny more."
Instead: look for homes that are fairly priced and make a reasonable offer. "Coming in about 10% below
list is a good starting place for negotiations now. Yes, you have the upper hand in most markets, but the
average homebuyer is paying only 2.7% below list price. Set your expectations accordingly. you can always
ask if the seller is willing to bridge a gap in other ways--for example, by picking up your closing costs.
Don't say: "I haven't put my house on the market yet."
Instead: List your current home before you start shopping seriously for the next one. Because it takes
almost three months to move a house these days, sellers are loathe to write home-sales contingencies
into purchase contracts. You'll have far more leverage if you've gotten rid of your house before you start
negotiating: Sellers know there's less chance of the deal falling apart. What's more, you'll know exactly how
much money you can put into your digs.
Don't say: "This is my dream house."
Instead: Stop imagining the great parties you'll throw and gird yourself to walk away if the seller won't
make reasonable concessions. Your ability to abandon negotiations is your powerful bargaining chip. Given
that plenty of other homes are on the market now, finding another place to love shouldn't be too hard.
You might let the seller know that. Nicely.
If you're selling
Don't say: "You're offering how much? Forget you!"
Instead: When bidders lob low-balls at you, thank them for their interest--and ask that they come back
with earnest offers. "If you become offended, enraged, or unreasonable, you've blown any chance at negoti
ation. These days many buyers are just testing you to see how big a discount they can get. Point the bidder to comparable recent sales that support your list price.
Don't say: "I know the deck was rotting."
Instead: Pay a few hundred dollars to get your house inspected before you put it on the market. Then
arrange to make any necessary repairs yourself. Taking care of any inspection issues upfront helps
sellers limit the points that buyers can negotiate on.
Don't say: "It might take us a while to move out."
Instead: Make sure to tell buyers--especially those who might have children starting school this month--
that you're willing to scram pronto,if possible. That will help you stand out from any short sales in your
area, which may have lower list prices, but can take months to close. "If the buyers have a strict time
limit, they're going to pay more money to get into a house quickly."
Comments