Buyer, Beware: 5 Home-Buying Negotiation Tactics That Can Backfire
There’s no denying that buying a home is a costly endeavor-in fact, it’s likely the most expensive purchase you’ll ever make. So it makes sense to try to negotiate where you can. Save a few bucks here, get a few things thrown in there, right? We hear ya-we’re all about making a smart offer that doesn’t leave you house-poor. But when it comes time to negotiate, there are a few strategies you should avoid, lest you risk offending the seller and losing your shot at your dream home. This is especially true in a red-hot seller’s market, where the seller might have a number of tempting offers and is looking for anything that breaks the tie. Of course, the key to smart negotiating is having the right team in place to advocate for you without alienating the other party. Sellers (and their agents) might be reluctant to deal with you if your agent is perceived as being difficult or-worse-shady. And if a seller is dealing with multiple offers, that could be enough to get you sent to the bottom of the pile. So find out the word on the street about your agent by checking the agents references (testimonials). And then help your agent help you into a great home by not trying to pull off one of these misguided maneuvers.
1) Making a Low Ball Offer
How low can you go? That seems to be the game some buyers play, assuming that if they start really low, they’ll end up getting the house for a song.”The real issue in starting well below the market value is that it costs you credibility, “The seller either thinks you don’t know the market or you are looking to take advantage of someone, and in either case, they don’t want to deal with you.”
2. Asking for a bunch of add-ons
You’ve found a place that’s within your budget. What’s more, you’ve fallen in love with the home-and everything in it. You might be feeling emboldened to ask for more than just the house, but you should resist that temptation some buyers who think it’s a good idea to ask for furniture or appliances to be thrown in for free Apparently the adage “it doesn’t hurt to ask” doesn’t apply in this situation. “Sellers become totally offended when you keep asking for more, and you risk alienating them, “Even if they don’t like their patio furniture anymore, they’d typically rather sell it on Craigslist than leave it for a greedy buyer.”
3. Using the inspection as a renegotiation tool
So, your offer was accepted, but then you start to get cold feet and you subconsciously (or consciously!) start searching for flaws that you could use as leverage to lower the price. “You can’t expect a perfect house, “If you’re constantly nickel-and-dimeing the seller, they might decide you’re not someone they want to do business with. “Mind you, the sellers generally can’t just back out because they’re unhappy, but if both parties are unable to come to an agreement regarding repairs, they can both decide to abandon the deal. Remember how much you have already invested in the process, in terms of time and money, and be willing to let the little things go.
4. Negotiating with incremental amounts
Nobody wants to pay more than they have to for a home-why offer $350,000 when you could have it for $325,000? But if you engage in too much back-and-forth, you’ll risk alienating the seller. When buyers insist on making incremental counteroffers, they’re just giving sellers a chance to move on to the next buyer.
5. Making a ‘one-way offer’
Just as the seller has a target price in mind, you probably have a point at which you’ll be unwilling to budge. But one of the worst things you can do is advertise this to the seller. The “one-way offer,” where buyers dig in their heels and state right off the bat, “This is our offer, you have X amount of time to respond, and if you don’t take it, we’re moving on. “This just puts the seller on the defense and usually is a path to a dead-end offer.
The market is moving faster in some areas and price ranges, make sure your agent has their finger on the pulse of the market so they can give you good advise. Buying a home can get stressful & confusing. We have the relationships that can make a difference & I am with you each step of the way making sure you understand all your options.