6 Negotiation Tips: Part 1

business people shaking hands in office
1. Offer should not be made based on the price, but the home value

When preparing to put your offer in you’ll need to takea few things into considerations. If a house is already listed below the market value then you are unlikely to have success if you offer a lower price. On the upside if the house is listed above market value and has been on the market a while you have a higher chance landing the deal with a lower offer.

This is why having a good agent on your side is key during the negotiation process. An agent will have the resources to help you gauge whether a lower offer is safe or not. If you go in blind and make an offer solely based on the price you see, you may leave disappointed and houseless.

Another helpful hint when finalizing your offer is to initially offer 10% below what you are willing to pay. This saves you in the end. More than likely a counter offer will be a bit higher than your original offer. If that is the case, you have just saved yourself from paying more than you originally intended to.

If you are looking for a home in the Lafayette, West Lafayette, or Tippecanoe County area, we have agents that will be on your side during this process. We know Lafayette, West Lafayette, and Tippecanoe County Real Estate. This is a huge advantage when we negotiate for our clients. An agent with deep knowledge of the area is one of the best negotiation tools possible!
links to agents

2. The more you ask the more you’ll receive

In the offer process, you will have the chance to conduct your own inspection of the house. During this inspection, you might find things that need repaired, replaced, or changed. You will get an chance to communicate these requests to the seller. This is a good opportunity to make sure your large investment is sound.

Don’t feel bad when asking for repairs or changes. There is not a limit to the amount of requests you can make. If you don’t make any requests then you are 100% unlikely to receive any changes before moving into your home. Like they say, “The answer is always ‘no’ if you never ask.”

If you want those appliances and basement entertainment center, ask! There is no telling what a person may be willing give up in order to sell out their house. The sky’s the limit on what you can and should ask for. A small tip when buying: you’re most likely to win concessions and personal property in a buyers’ market.

It is also said that the best time to ask for any repairs, is to wait until after the inspection has been completed. The more repairs and changes you ask for, the more you are likely to get. Be mindful of the fact that you will not receive everything you request. However, 25% of 20 requests is way better than receiving 25% of 10.

An agent will help you determine what actually needs to be addressed and what can be ignored. Your requests will be met with a counter offer and a good agent will know how to navigate your through that!

To be continued…