In the past two months, the mortgage rates have fallen slightly. With the low inventory and high demand, buyers enter bidding wars. This has made the home-buying process quite challenging, which you cannot handle without an Orlando realtor.
Negotiation is an art. It is based on four factors:
- Comparable Homes
Known as comps in real estate language, these are homes in the neighborhood with similar outlay and features. If they don’t contain any additional features put in by the owners, their sale price can be used to ensure that the house you are looking at is priced right.
- Finances
You can happily browse listings if you can make a 20% down payment and know your monthly income is enough to make the mortgage payments. Leave a little wiggle room in your budget so you don’t compromise on any major features.
- Other Bidders
If you are in a bidding war, ensure the house is worth your time and money. Inspect the house thoroughly so you are not disappointed after the purchase. However, do not go out of your budget, or you will be in debt later.
Here are some tips on how to negotiate the sale:
Counter with a Low Price
Often buyers make the mistake of countering with a lowball offer. This upsets the seller emotionally, and they reject your offer. Sellers expect some back and forth, so you must be strategic about it. When making a counteroffer, go slightly below your affordability margin. This will allow you to increase the price in the next offer and give the seller the impression that you too, are compromising.
This is where comparable homes come in. You can negotiate with assurity by stating that other houses in the area cost the same or less and that your counteroffer is within range.
Consider Contingencies
There are plenty of things that you need to consider before agreeing on the sale price. One of them is appraisal. Let’s assume the seller quotes a price, and after negotiation, you both make a compromise. Without reading the fine print, you sign a few documents that lock you in the deal.
Since you didn’t get the house appraised, you might be paying a higher price than the property is valued at. So, add contingencies into the contract so that if something the seller said is not true, you can back out of the deal.
Inspect the House
A house inspection reveals the truth about the property. It tells you what’s going on behind the walls and under the floor, giving you a complete picture of the foundation. Everything might seem in good condition to your naked eye, but a burst pipe can cause expensive plumbing issues.
In conclusion, the best way to negotiate is to arm yourself with the right information to argue with the seller and counteroffer with facts.
If you plan to buy Orlando real estate, visit the Megan Dowdy Realty website. Contact a real estate agent to show you houses and talk to a seller on your behalf. For more information, call 407-509-9279.
