There’s a lot more to buying a house than money matters, and a lot more to real estate than cold, hard numbers. When it comes to negotiating with sellers for that hot property in West Palm Beach, it’s best to think of it as a pitch for yourself as the perfect buyer. Here’s how to bring your best foot forward when negotiating to buy a home.
Work with an experienced broker
Making the decision to work with a very experienced and knowledgeable broker before tackling house buying negotiations with a seller is the smartest first step you can make. Negotiating can be tricky and intimidating, especially if this is your first time. Working with a broker assures you that you have an expert on your side that can bring objectivity, diplomacy, professionalism, and knowledge of the market to the table. Negotiations require a lot of information gathering. Keep in mind that knowledge is power, and an experienced broker will be able to use that knowledge to your advantage.
Hire a Realtor with excellent people skills
Establishing a good connection with the seller makes a huge impact on your chances not only to seal the deal, but also to get a very favorable home price for the property in Ibis you are interested in purchasing. Hire a Realtor with excellent people skills and a reputation in high-end homes. Remember that negotiating is very people-oriented and is all about persuading others to do what you want. The more the seller likes your agent, the more likely you are to get what you need during negotiations.
Find out why the seller is moving
Here’s where knowledge can turn into a powerful negotiating tool. With the help of your broker, find out the story behind the sale. The information allows the buyer to find opportunities to negotiate a better price, especially if the seller is in a hurry to sell the property, or if the house requires plenty of repair work. Request a home inspection after finding a property you like. Based on the results of the inspection, your broker can ask for seller concessions, which means having the seller agree to cover closing costs.
Prepare to make an offer
Draft a clear offer, and have your broker check it before submitting to the seller. Make sure that the address you put down is correct. Double-check and verify all the figures in your offer. Ensure you have the closing date and terms of possession. Review seller and buyer responsibilities and check for “red flags.” Be careful not to overlook details that might become bigger problems later on.
Act quickly and decisively
After making an offer, the seller may respond with a counter-offer. It’s good to give an answer within 24 hours. The longer you wait, the more likely it is to have other buyers swoop in on the property. Also, the seller might even choose to withdraw the counter-offer if they sense hesitation from your end.
Up the ante
Increasing your earnest money deposit could show the seller that you’re serious about buying the property. The standard deposit is 1% to 3% of the sale price of the home. Increasing it to 3% to 4% may convince the seller to accept your offer.
Don’t be afraid to walk away
It’s best not to get too attached to a property while in the middle of negotiations in case the deal falls through. Your broker will be able advise you on whether a deal is worth pursuing so it’s best to listen to their feedback. If the deal will put you at a disadvantage, learn to walk away. Save that cash for something better that will come your way.
Thinking of purchasing property near the Ibis Golf and Country Club in West Palm Beach? Let Eric Telchin help you make the best buying decision. As a resident of Ibis for decades, Eric is at the forefront of working with buyers and sellers in the area. Make an appointment with the Number One Broker in Ibis today. Call Eric Telchin at 561.301.0249, or send him an email at erictelchin(at)hotmail(dotted)com.