Don’t wait to counter-offer
Responding to counter-offers is important. This is an
opportunity for you to either make or break the purchase of a home. And, I’m
assuming if you have made an offer on a home you really want it. By not jumping
on the counter-offer you are allowing other buyers the opportunity to sneak in
with a better offer, or any offer at all that the current home owner is willing
to take.
You should also consider your counter-offer carefully before
making it. Willing you be willing to go higher if certain criteria is met, such
as repairs, or inspections. Having a contingency plan based on expected offers
from the seller is good to have in your back pocket so you can respond quickly
with an offer you are comfortable with.
Talk to your agent
You should always remember your real estate agent when you
are making an offer. Whether you have bought one home, or multiple, it is
likely your agent has been through this process many times more than you and
can make good recommendations on what they think the house will sell for as
well as reasonable contingencies.
In addition, your agent can approach the seller with any
questions you have before making an offer, or in regards to a counter offer.
Try to get the scoop on the seller
While not always possible, you may be able to find out
information on the seller that is useful in making your offer. The situation of
a seller can work to your favor. For example, if a seller is motivated to sell
because he or she has been transferred to another city for work. Or, perhaps
the house has been on the market for several months and the seller has already
purchased a new home. Both of these situations may suggest that the offer can
lean in your favor. That is if you are the only offer on the table.
The same goes the other way. If the seller is contemplating
renting out their home if they don’t get the offer they want. Perhaps, the home
is a hot commodity, or only been on the market a short period of time. Maybe
the seller simply isn’t in a hurry to move until they receive the offer they
are looking for. Any of these circumstances may put the negotiation on the
seller’s terms. However, you may be able to find better footing by leveraging a
little compromise.
Review what you can afford
For many buyers who have been looking at homes at several
hundred thousand dollars, it can be easy to think that upping your offer by
$10,000 or $20,000 isn’t that big of a deal. Yet, be careful. It is always a
good idea to run the numbers through your mortgage professional. Sometimes a
higher offer may not affect your monthly payments, but you may also be
surprised at how much the interest, taxes, and insurance can tack on.
When you talk to your mortgage professional, it is a good
idea to have them run your monthly payments through several price offers, so
you know what to expect, if you have to make a decision between a higher
counter-offer and a lower one.
Consider writing a personal letter to the seller
Don’t ever underestimate the power of the pen. You need to
remember that to most people their home is an extension of who they are. People
want to know their home will be left with another good family, and people who
will care for what is essentially part of their self.
By writing a letter to the seller on why you want the home,
noting specific features, and how much it will mean to you and your family to
have the home you may just give yourself an edge. When you provide a personal
letter, possibly even photos of your family (and don’t forget the dog) you are
putting a face to a name, and taking yourself outside the bounds of simply
being another number.
