You found the right house to buy and feel confident about it, so what do you do next? Well, the next step in the process is working out a deal to buy the house. To do this, you will have to write an offer for the property. Next, you will have to give it to the seller. The seller will get a chance to review it and respond to it. This process is known as negotiating, and it is a critical step in buying a house. If you want to get the best deal and work out an arrangement with the seller, you may want to follow these three effective tips for negotiating on the house.
Keep the Offer Amount as Close to the Asking Price as Possible
While the amount you offer is not the only factor that affects an offer, it is a big part of it. If you want the seller to thoroughly analyze your offer and accept it, make sure your offer amount is as close to the asking price as possible. For example, if a seller wants $210,000 for the house, make sure your offer is over $200,000. You can save money in other areas of your purchase offer, but this amount is crucial in the seller's first impressions of the contract you provide to him or her.
Use Facts to Offset the Amount
Next, you have the option of adding contingencies to the contract. A contingency is a request or condition that you make to the seller for a specific purpose. The best way to use contingencies is to stick with facts about the house. You can use these facts to offset the amount you pay for the home. For example, if the appliances are old and outdated, you could place a contingency in the deal that asks the seller to replace them. The fact is that the appliances are old. Asking for the seller to replace them is a reasonable request. You may still pay the same price for the house, but at least you would get brand-new appliances instead of the old ones.
Offer Something Positive
Finally, when you write your offer, provide something positive to the seller. For example, do you have guaranteed financing for the home? If so, write that in the contract. Sellers like finding this out about a buyer. Another example is a fast closing. Sellers love fast closings. If you can guarantee a speedy closing, it might encourage the seller to accept your offer.
Do you have questions about negotiating on a real estate deal? If so, ask a real estate agent for help as you search for a home to buy.