Houses For Sale – Negotiating the Price
In any deal, be it homes for sale, cars for sale, or any market item, both parties must be quite satisfied with the final deal. The seller wants the highest price he can get and the buyer wants the lowest possible price.
In England and Wales, the guide price is generally set at around 5-10% above what is expected to be achieved. However it will vary a lot, it depends on the desirability of the property and the market conditions. If you want to sell fast, you set the price at the price you are happy to accept. No offer. This is the simplest way to sell. You simply say that this is the price you have to pay, take it or leave it. However, the risk is that your home will be left because there is room for negotiation.
When you first think about selling your home, you will have the ratings of several real estate agents. They will recommend a price to market your home and suggest a price range of what they expect you to get.
Of course you will want the higher price but be prepared. Know yourself the price you are happy to accept – be realistic. Find out what similar homes have been sold for in your area from real estate agents and online sites.
If you are the seller, generally when you get an offer, you will try to increase the price by a few thousand. Make sure you keep in touch with your real estate agent and tell him you don’t want to lose this buyer by being too pushy. You must keep all doors open in case you do not receive any other offers.
Get to the point where the buyer makes his final offer. At this point, don’t say no outright. Take your time, think about it. Ask yourself: How many offers have we received? Is this buyer likely to be trustworthy? Do we want to risk being still on the market if we say no? Is the offer sufficient to get what we want? houses for rent in crewe
If you are the buyer, you need to know what you can realistically afford. You must have called a mortgage broker to find out which mortgage you could get and how much monthly payments will be. You need to know what your deposit will be. You need to know the maximum price you are able and willing to pay.
Once you know how much you can afford, you will roughly know the price range of what you are looking to buy. So when you’ve seen a house you like, you’ll need to consider the extras: Would you like to work on the house? If so, how much will it cost?
Consider who the seller is. If it’s an estate sale you may be able to get it cheaper than you normally would, as the deceased’s family typically just wants to get rid of the property. Properties of this nature also often require updating.
When bidding remember that you can always go up, so start at the bottom. When you bid higher, tell the agent why your bid is low, e.g. the house is in need of refurbishment, is slightly above your price range and you are extending accessibility as much as possible, it is in a less desirable area than you would have liked, etc. The reasons are important when indicating the price.
If you hit the maximum amount you can afford to pay, don’t be tempted to exceed it. If you do, you may be preparing yourself to be very stressed over money matters. Instead, find another home in your price range. Try not to put your heart on a house until you have swapped contracts in case it fails for any reason.
Once an offer is accepted, a survey will likely be done. Depending on the survey results, you may be able to negotiate the price again. If the survey highlights factors that will be costly to you, you may be able to get some of the costs from the asking price.
When you are negotiating, both the buyer and the seller need to take time to consider the amount of money to accept. Neither should be tempted to give an answer on the spot. Take some time to think about it, then call the real estate agent back later or the next day.