First Timer Tips: The Art of Making an Offer and Negotiating

Posted by Annalisa Burgos | July 20, 2009

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negotiating-an-offer-to-buy-a-houseI’ve never been a great haggler.

For most of my 20s, I accepted terms that were offered to me, not really knowing I could fight for what I wanted.

Perhaps it was my aversion to conflict (Libras like me seek balance, after all) or the ingrained, albeit naive, notion that people always offer a fair price.

Looking back, I wish I would have negotiated many more things in my life — career opportunities, salaries, boyfriends… but I digress.

As a first-time homebuyer, it is absolutely critical that you understand how to make a strong offer and how to negotiate with the seller to get terms you both can live with, especially if you really want the home.

Negotiating skillfully requires that you do your research — calculate the property’s fair market value from comps, understand the seller’s motivations for selling in this market, and know what concessions you are willing to make and what your deal breakers are.

Check your emotions at the door. Consider everything analytically, carefully, so you don’t get caught up in the heat of the moment and end up doing something you regret.

Think of this preparation as your training before you jump into the negotiating ring. Just because you’re in a buyer’s market doesn’t mean the seller is going to jump at your offer. You can safely assume that the seller has done their homework, so why should you come unprepared?

2 Comments

Shirley Godbold

October 6th, 2009 at 9:00 pm

Sandra, from Property Virgins makes a comment that when dealing with a bank on a foreclouser they will not make repairs….that is not true! A year ago, my youngest daughter made an offer on a foreclouser, contigent on a home inspection. At the home inspection we discovered that the heat pump and electric water heater did not function AT ALL! It was an as is sale, but she wrote the bank saying as a “young professional woman and first time home buyer she would have to opt out of the purchase”. She was ready for them to either say no to the repairs or that they would pay half the cost. They PAID for it ALL! So sometimes they will pay for repairs.

This was at the peek of the foreclousers and banks were wanting to get things off their books!

Erin

October 15th, 2009 at 7:05 pm

Lots of great tips here for people new to the market. I wonder if there are others on this new site, http://www.firsthomeexperience.com/main/ that your readers might like.

Could you take a look and let me know what you think about the info. You’ll see stuff for buyers, realtors and some easy to enter contests.

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