Home & Family
Negotiating a Successful Real Estate Deal
1/9/2013 1:20:57 PM

"Whether you're the buyer or the seller, everyone wants a good deal. There are things you can do to tip the scale in your favor and have a good position during negotiations,” said Larry Turner, REALTOR with Century 21 Bessette Realty.

If the market is full of overpriced homes, buyers will have the upper hand. The amenities and location won't matter as much if a buyer knows the house could be priced lower in order to sell. On the other hand, if there aren't many homes for sale in desirable neighborhoods, buyers are usually willing to make more concessions.

"The market can dictate who has the upper hand. The spring and fall are usually busy home buying seasons with plenty of homes on the market giving buyers the upper hand on getting a good deal,” said Turner.

As the saying goes, the devil is in the details and real estate is no exception. At face value, it may seem as though two homes are comparable, in good neighborhoods and priced the same, but the deals could be very far apart. One owner may have agreed to several requests from the buyer, such as including the refrigerator, painting the interior of the home, and providing a homewarranty, while the owner of the other house made no concessions. "The buyer in the first example is in the driver's seat during negotiations. They've found a motivated seller and are able to get a few upgrades included in the deal,” Turner explained.

Look for leverage.

Whether you're looking to buy or sell, do a little homework to see where you might be the most competitive. If you're one of four people to make an offer on a home, the owner has no incentive to make any concessions so, unless you're determined to get that particular piece of property, you may consider moving on to another home in order to have more leverage.

Sellers should look for buyers who are pre-qualified.

This means they've been to a lender and have completed preliminary loan paperwork and have a realistic idea of how much they can afford to borrow. This doesn't guarantee them the loan, but it shows they are serious about buying. "Transactions can still fail if the home doesn't appraise high enough or if there is a problem with the title, but the process is moved ahead a few steps if the buyer is pre-qualified,” he said.

Doing a little homework will help during negotiation time.

While the goal isn't to gouge, knowing a few key details can help you get a good deal. Is the seller looking to move quickly due to a job transfer? Is the upcoming start of school an incentive for a buyer to want to move now in order to be settled before school begins?

Keeping your options open is key when it comes to negotiating.

When emotions get in the way, you've lost the upper hand. "You may decide that you'll spend more to get your dream home, and that's fine if you can afford it; but if you're looking to get a great deal, you can't let emotions lead negotiations,” explained Turner.

Above all, remember the goal.

"If you're wanting to sell your home, carefully look at every reasonable offer, even if it is below what you had in mind. Deals fall through all the time because one party is not willing to compromise. Being flexible and reasonable will help smooth out your negotiations,” said Turner. "That's where a licensed realtor can help. We know the market, what's available, and how you can concede in one area but come out ahead in another. Our goal is to get the best deal for you.”

Buying or selling a home is a big decision. In most situations, both parties give a little, allowing them to each get a fair deal and move forward with their dreams.

Visit Century 21 Bessette Realty at booth #12 at the Home Show.

 

 

 
Posted by: Christine Fisher | Submit comment | Tell a friend

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