You’re buying a new home, and you’ve spent the last several weeks or months thinking about it. You’ve been planning, searching, researching, and looking at houses. It’s finally time to make a move – you have fallen in love with the perfect home and you’re ready to make an offer. Despite the excitement you are undoubtedly feeling, you can’t let your emotions get the best of you during negotiations with the seller. That’s where we come in. At Realty Executives, our qualified professionals have the requisite knowledge, training, and experience to help you temper your feelings when making an offer on a home.
The best way to feel fully prepared and in complete control of the process is to make sure you’ve done your homework. From research to mortgage pre-approval to arranging viewings, your agent can guide you along every step of the way. However, there are a few things to keep in mind at this point. You may be thrilled at the prospect of buying this house, but you don’t want to lose any negotiating leverage by letting the seller know how much you want their home. You don’t want to alienate the seller with a lowball offer and miss out either. Nor do you want to engage in a bidding war that drives the price up. Fortunately, your Realty Executives agent has the expertise to help you walk the tightrope.
Curb Your Enthusiasm
It can be easy to get emotionally carried away if you’ve been looking for a while and you’ve finally found a home that meets most of your requirements, especially when you feel like you’ve discovered the ideal place. Your agent will be there to helpfully remind you that, no matter how much you adore this particular home, there are plenty more on the market that are just as good, if not better. As a buyer, that is the mindset you need during negotiations with sellers and their agents. Always wear your poker face and never tip your hand.
Beware of Bidding Wars
When making an offer on a home you want, it is important that you don’t get caught up in a bidding war that leads to an increase in price. This scenario occurs mostly in a seller’s market, where there is more competition for a smaller number of homes. You can proactively avoid bidding wars by getting preapproved for a mortgage ahead of time. This way, you and your agent are aware of your exact price point and you can negotiate accordingly.
Current Market Conditions
The condition of your local real estate market will have a major influence on the level of interest and competition for the home you want to buy. If you’re fortunate enough to be in a buyer’s market, you have all the power because there is a wide variety of homes available and fewer potential buyers. Therefore, you may be able to hold out for a more favorable price. On the other hand, in a seller’s market, buyers have no leverage and may have to act quickly to make an acceptable offer.
The human element is the most difficult variable involved in making an offer on a home. You and the buyer both want what is in your own best interests in terms of price, what the deal includes, and other conditions, including closing date. Even though they’re selling, many buyers maintain an emotional attachment to their homes and may be dismayed by a conservative offer that they find insulting. Once that happens, your window of opportunity can close for good. Your agent can help you navigate these potential minefields to achieve the results you want as a buyer.
Realty Executives: What We Do
In addition to handling the human element, your Realty Executives agent will use the tools of the trade to provide the information you need and deserve as a buyer. One of the most effective resources available is the Multiple Listings Service (MLS) and the comparables it can generate. By reviewing the recent sales trends among similar homes in the area, you and your agent have access to valuable data including the number of days properties remain on the market, listing agent history, and original, adjusted, and actual selling prices. As you prepare to make an offer, your agent will balance your emotions against the reality of the market and the details of the property you want, allowing you to make the right choices for yourself and your future.