When you've found a home you love and want to make an offer on, one part of the process you should be prepared for is negotiation. Especially in today's "seller's market" where demand is much higher than supply in many areas, sellers have plenty of leverage, and negotiations are common within this process no matter what.
At Daybreak Living, we're proud to offer the best resources in Utah when it comes to finding new homes, townhomes, condos and other properties. We help our clients not only locate ideal properties, but also move forward with the offer and negotiation process. What are some tips we generally provide to our customers when it comes to negotiation, both in terms of good-faith actions and in terms of getting the most out of the situation? This two-part blog series will go over a few basic concepts.
Act Quickly
The negotiation process will involve a series of offers and counter-offers between you and the seller, and it pays to act quickly. If you wait too long, you leave the door open for other buyers to swoop in and make an offer. By the same token, the longer you take to respond with a counter-offer, the more time your seller has to accept another buyer's offer. Strike while the iron is hot!
Be Flexible on Price
While you should certainly have a price ceiling above which you will not pay under any circumstances, you should be prepared to be flexible on the price if it means being able to secure the property. Don't offer your entire maximum budget on your initial offer if possible -- leave some wiggle room for price negotiations, otherwise whoever gets to the point of accepting offers first is likely to take the highest bid.
Increase Earnest Money
Earnest money refers to the money you put down as a deposit to show that you're actually committed to the purchase. When you make your initial offer, it's usually best to increase that amount as much as possible without making an unreasonable offer. For example, if your initial offer is $100,000 and the seller asks for $10,000 earnest money, don't counter with $5,000. Instead, counter with something like $5,000 plus an additional bonus if you are able to close the sale within a certain time period.
Be Patient
Sometimes, for whatever reason, your negotiations may not go anywhere immediately. Just because you've countered back and forth doesn't mean that the seller is going to accept or reject immediately -- it could be days or even weeks before you hear anything back. Don't pressure the seller and don't take it personally if they need some time to think it over after your offer.
For more on how to manage real estate negotiations for a new home, or to learn about any of our homes for sale in Utah, speak to the staff at Daybreak Living today.
Utah Dave - Daybreak Neighboorhood Expert and Local Resident