As the buyer, the last pitfall in front of you and your dream home is the offer and its acceptance by the buyer. The offer you make it according to what you feel is the worth of the house and, of course, your budget. The seller will sell the home to another buyer if the offer is too low.
On the contrary, if the offer is too high and more than the actual worth of the home, then you bear the loss. In both cases, you’re actually losing. You could lose your dream home or you could lose in monetary terms. Finding balance and making a fair offer is the key to success.
But, this isn’t as simple as it sounds. As a buyer, you should stick to the following tactics and strategies before making a home offer.
1. Do Your Homework
You need to make sure you are on top of your research. Your top real estate agent can offer you help in this matter. Make sure the agent use the right networks and brings actionable information to the table:
Knowing the Seller’s Motivation to Sell
Try to find out the reason why the seller is selling. A good real estate agent would gather information about the seller from the listing agent as well as other sources. This will help you to understand their needs and tweak your offer accordingly.
If the seller wants to move to another city, for instance, and needs to make a quick sale, you know you can wrap up the deal quickly with the right offer.
Other Offers to the Seller
You need to know about any other offers that the home seller has received; these will shape your offer too. Your offers to be in the same range so to make the seller consider it. You want to be part of the negotiations at the very least.
Rationalize your Offer
Do your research about the house that you intend to buy. Check listing price and historical data about its ownership. Also, find out about the sales of houses nearby.
Once you make an offer, do make it a point to explain the rationale to the seller. For example, if a similar apartment was sold for an X amount of money, but your offer is lower. It could be because the apartment in questions requires major repair work.
Sellers are usually sensitive about their homes. Even if you are making a lowball offer, give your reasoning politely and humbly so that the seller doesn’t feel insulted. You don’t want to put them off. The goal is to open room for negotiation.
2. Personal Communication
Personal notes or any other form of communication can help you stand out compared to other buyers. The sellers have attached sentimental to their homes and would want to sell it to a person who can take care of it. Your communication would show the seller the importance that you give to the small things that matter. It can win the heart of the seller and ultimately the deal.
3. Don’t Mention your Financial Limitations
The seller isn’t interested to know about your financial conditions. They want to get the fair value of their property and sell it to someone who can take care of it properly. They would want the buyer to meet their requirements. Thus, your financial limitations are not a concern for the seller. The strategy is to appear strong and convince the seller that you are the right buyer.
4. Counter the Counter-Offer
At times, the seller doesn’t give any response after you make the offer. Buyers misread this and think that they stand no chance of sealing the deal. You end up making a higher offer. This shows the buyer that you are perhaps too keen on buying a particular home, and the seller can take advantage of this.
The best way to turn around the situation to your advantage is to ask for a counter offer. After the counteroffer, feel free to counter the counter-offer and restart the negotiations. Try to negotiate and come up with a win-win solution for everyone.
5. Include Quirky Numbers
Do you know why businesses use $97 or $99 instead of $100?
It’s a way to trick the brain that you are spending less. Similarly, instead of rounding off to the nearest whole number, use an odd number. It can help to trick the seller into thinking you are giving more than you are. For example: instead of giving an offer at $875,000, you may offer $875,385. The increase is just $385 but it can stick in the seller’s mind and help you to win the deal.
6. Add Conditional Clause
Home buyers usually make the mistake of giving 10% of the purchase price to the seller as a token deposit without any conditional clause. Getting back that hard-earned money becomes a tedious task if there’s any flaw in the home. Add a conditional clause that you will give the token deposit of 10% after inspection. Get pest or structural flaws verification to the earliest. Before that, you may give some amount or 2% of the purchase price.
These strategies can help you bring a step closer to your dream home. At times, a simple strategy works and makes a difference. Even if your offer gets rejected, don’t lose hopes. Stay updated about your dream home and if it doesn’t sell in a month or two, you can remake the offer. Hoping that you get your dream home soon.