House Negotiation

SETTING THE OFFER PRICE 

The listing price to a home is a suggestion and is often negotiable.You should have a strategy to negotiate the price of the house.Think about the information you need to gather to figure out what your best strategy is for meeting your interests/goals. Do your research and know the aspiration value and reservation value for yourself and for the seller. 

Here are a few things to consider when setting an offer price:

• The number of days the home has been on the market. When homes have been listed for a long time that means that there are not many competitors. That gives the buyer room for negotiation on the price. 
• Do research on recently sold homes in the area of comparable size, condition and age to 

The first offer you make on the house should be lower than the maximum price you’re willing or able to pay (Reservation Value). Once the offer is made, the seller might accept, decline or counter the offer to start the negotiating process. 

NEGOTIATING THE OFFER PRICE

Negotiate on the basis of total cost and not just the asking price. The total cost would include fees such as maintenance fees, closing costs, pronto fees and the monthly cost of paying for the house. Set an expiration date for the offer you make. The expiration date must be a short period such as 24 hours in order to not invite competing offers. Furthermore, it is crucial to negotiate after inspection as well. You can always ask the sellers for cash-back credit or to fix certain issues that was not disclosed to you.

NEGOTIATING CONTINGENCIES

Let go fo a few contingencies to give your counteroffer a bigger boost. When you reduce the number of contingencies you're asking for, you are ensuring to the seller that you will close the deal and it will help your offer stand out. However, be careful with what you decide to waive because many contingencies exist to protect the buyer. Another option is to offer to shorten the contingency period rather than waiving it all together,