Keys to Homeownership: Negotiating a Purchase Price
Congratulations, you found it …your dream home! Before you celebrate, though, you first have to put in an offer and come to an agreed-upon price between you and the seller.
Negotiating a purchase price on your new home can be a stressful part of the home buying process. Here are a few tips that will help you and your real estate professional strategize the best way to win the deal.
One situation that homebuyers may run into is finding out a seller has received multiple offers on a property they’re interested in. Cara Ameer, an agent with Coldwell Banker Vanguard Realty, advises buyers to think about how serious they really are about the particular property. If you could easily move on and continue the search for a new home, it may be best to walk away from a bidding war that could result in spending much more than you originally planned.
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If the home really is “the one,” something called an escalatory addendum can be used. Ameer explains that this agreement states you will exceed the highest offer up to a certain dollar amount. Remember, if you are taking out a mortgage, you are buying into a monthly payment, so be sure you consider how your bid may affect your monthly payment. Your mortgage adviser can assist with this.
The closing date can also be a deciding factor in one offer being accepted over another. This is where flexibility is key. If your needs match up with the ideal timing for the sellers, this can help seal the deal. Your agent will be able to speak with the sellers to find out what works best for them and relay that information to you.
Ultimately, Ameer says that an offer is simply an invitation to get a conversation going. Hiring a qualified agent who can help you navigate through these conversations can help you land a dream home at a price you are comfortable with.