When making an offer in real estate, it is common for people to get a bit tense. This is because we don’t want to hurt the seller’s feelings while still getting the deal we want. We still have to note a few facts. Business and real estate go hand in hand. You need to set aside any pleasantries and stick to doing good, clean business. It’s easy to negotiate properly in real estate.
You don’t have to be edgy when bidding low to a seller. This is because you aren’t aware of the seller’s mindset or needs. Face-to-face contact isn’t even necessary. Your Realtor would be dealing directly with the seller in most cases.
The next step is to wait for the seller’s decision.
Sometimes, he or she would go with the offer, no question asked. You can have a new house at the ideal price once the contract has been signed.
The seller can also reject your offer. In that case, you can either make a new offer or move on and look elsewhere. No problem. At least you bid low without hesitation.
In negotiation, always expect the counter-offer. He or she would turn down your offer, but give alternative options. You can now accept the counter-offer, or reject it or make your own counter.
Take our example, where we got a bid $40,000 less than our selling price. We then counter-offered, reducing the asking price by $10,000, which was then accepted. Since we were in the process of house hunting, our asking price on the old one was quite high. But we never rejected any offer outright, which led to the sale.
Coming up with a top-of-the-line purchase price can help you in the buying process. Stick by the price you have set once you’ve come up with something.
One bonus piece of advice. Keep an eye on the seller if he or she would be flexible with the prices. Catch the seller off-guard with a counter-offer.
But wait, here’s one more piece of advice. There are always more than enough homes on the market. Be prudent in looking for the right house, and your efforts will pay off. Always look for a house that you can afford. Avoid going over your budget. This is a general piece of advice, not just for bidding.
Purchasing a home and negotiating isn’t just about the money, there are other factors as well. Use the element of surprise with a fast settlement to lure the seller in. As long as you have the cash for it, it could be beneficial to the seller. Likewise, the same principle applies on the seller’s end. The seller may want to wait it out until the sale is final. Can you hold out for a little while? This could also lead to a better price.
To finalize things, it is important you know what you’re looking for and know how much you’re intending to shell out. This will keep you covered as things piece themselves together. Make a low offer, and remember the worst possible outcome isn’t that bad. The seller will say no, but you can keep on looking around.
About the author: Sheryl Sandidge is a researcher and author for the calorie chart and food to avoid websites.