Making an offer on a house is just like negotiating to buy something at a yard sale or at the car dealership, except on a much grander scale. Here are some helpful tips from our friends at Rebates on Real Estate to keep in mind. The one thing to remember when making an offer is that the homeowner is already anticipating you were going to come in and negotiate, so they have already raised the price to cover the ability for them to drop the price. Don’t feel like you are insulting the homeowner, many buyers are on a budget or only have certain amounts the lender will give them. Consider this advice for making an offer on a house before you pay more than you need to.
Go Low First
Like we discussed, the homeowner is already expecting you to counter their price, so don’t sell yourself short by only coming down a little in price. Once you make that offer and they quickly accept, you can’t go back and try to go lower. Go low with the first offer, they will either hesitantly accept or make you a counter offer. That way you know exactly where you stand on price.
Inspection Always
Before making the offer, get a professional home inspector to come out to the house and check everything. They will look closely at the plumbing, electrical system, roof, foundation, and all the working appliances throughout. If there is any issues in the home, now you have some bargaining power. You can better negotiate with the homeowner by telling them to either come down “x” amount or repair all the issues you uncovered.
What is Staying
Ask the homeowners what is staying and what is not part of the sale. If you fell in love with the house but now are just realizing the homeowner is taking all the appliances, all the window treatments, and items you assumed were part of the sale, you need to adjust your offer accordingly. These items will need to be purchased after the sale so make sure you cover that cost before paying too much for the house.
Get it in Writing
Now that you understand what is staying in the house and have had it inspected, make a serious offer that is in the ballpark of what the homeowner wants. If they are asking $200,000 and you offer $100,000 for the house, not only will you insult them, they may not want to do business with you. Be considerate but be penny conscious a the same time.
This advice for making an offer on a house should get you the most value for your dollar and ensure no major repairs will be needed for the foreseeable future. For more help in finding your next home or real estate purchase visit: http://rebatesonrealestate.com