In this installment of Here’s How: Home Buying we take a close took at the offer and negotiation of price after you have settled on the house for you!
The written purchase offer indicates the amount you are willing to give the seller for his or her property. Your written offer forms the basis of a legal contract with the seller, be thorough. There are some important details you should be sure to talk through with your agent, and to make sure are accurately included on your purchase offer, such as:
- The amount you are offering for the home
- Contingencies to protect you if your financing falls through, or if the inspection unearths major problems with the home
- An expiration date, by which the seller must respond or your offer expires
- The amount of earnest money you are offering
- The size of your down payment
Once you make a purchase offer, sign it and submit it to the seller along with your earnest money, the seller has the right to either sign your offer as is, make a counter offer, or reject your offer outright.
The average discount varies by market, but it’s often about 5% below the listing price. These days, it may be even more. How do you get there? Negotiation.
A few tips on how to nudge your way in with negotiation:
- Treat your initial offer as an opportunity to gather information about the seller’s motivation for selling.
- Be realistic with your offer; don’t lowball.
- Be ready to walk away
- Don’t show enthusiasm
- Stick to your guns.