Thursday, June 5, 2014 / by Teresa Dipeso
If you dread the negotiating process when buying a home, never fear. Jersey Shore Realty Group team members are experienced negotiators who help you keep the bargaining from becoming emotional and veering off track. Following a proven, repeatable system will prevent unwanted surprises during the transaction.
Before house hunting, it's important to get preapproved for a mortgage loan. This means your mortgage lender has reviewed your credit history and assets, checked employment and income, examined your debt-to-income ratios, and has preapproved you for a certain amount, terms and interest rate so you know exactly how much you can spend.
Being preapproved shows sellers that you are prepared and able to buy. Before you submit an offer, Jersey Shore Realty Group will obtain additional information about the Sellers terms. The more your offer matches up with the seller's requests, such as a closing date, the more likely your offer will be accepted.
It's also important to find out when the house will be vacated, if any repairs or improvements are planned, and if the seller has any pressure points such as a relocation deadline. You will also want to review the seller's disclosure of the condition of the property.
Jersey Shore Realty Group will find out if other offers are on the table. Your position is stronger if there are no other offers. The seller may be less likely to bend on price concessions or repairs if there are other offers.
Jersey Shore Realty Group will provide you with the most recent CMA (comparable homes recently sold or on the market) within a reasonable radius of the home, so you can sculpt your offer price. Be sure you compare “apples to apples” in terms of location, condition, amenities, schools, etc.
Once these steps are made, you are ready to write an offer.
Making the offer
Try and think like the seller. It helps you anticipate what the seller will accept in price, terms, and other conditions. By considering the seller's position, you will likely create an offer that is either accepted or strongly considered.
Your offer should be clear on the terms, closing dates, repair requests or other conditions the seller needs to meet and it should be accompanied by a letter from your lender that you are preapproved to buy the seller's home. Including a cover letter summarizing your strengths as a buyer in terms of creditworthiness, flexibility in closing, and the strength of the offer also helps.
The only thing a seller can't argue with is a strong set of comparable properties that show the home is overpriced or out of date. These are homes that have sold that are nearby and similar in age, size and features. Showing that a similar home has sold within the last two months for less than the seller is asking is good.
Be sure all conditions, repairs, etc. are agreed to in writing. Some sellers may feel that a handshake covers a promise, but it's essential to be clear on paper what is expected and when. A seller's promise to paint should be included as an addendum to the contract and include all details, such as primer, exact color and type of paint, how many coats, and when the work will be finished for inspection.
Negotiating after inspections
The offer is negotiated and accepted, the earnest money is at the escrow agent's office. Now the inspections occur, and this is where the contract negotiations can become challenging.
No home is perfect, not even brand-new construction. During the inspection process, the inspector will tell you about any condition of appliances, heating and cooling systems, roofs, electrical and plumbing systems, etc, and if your future home is up to current city codes.
Sellers are usually not required to bring a house completely up to current local building codes. Buyers can negotiate on repairs to make systems safe and operational throughout the home. Unless the property is being “sold as”, sellers are often receptive and have as much desire to make the contract work as you do. Jersey Shore Realty Group negotiates on your behalf and helps you purchase the home in the price and condition you are looking for.
These are just a few of the services we provide for our clients. We put our knowledge and experience to work for our clients because we believe you deserve to work with skilled professionals.
When you are ready to buy or sell a home, call Jersey Shore Realty Group. We will be with you every step of the way and long after the transaction is complete!