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Deal or No Deal: Negotiating the Sale Price of Your New Home
Karen Lawson
CMR Columnist
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In the world of real estate sales, negotiations are expected and encouraged. Negotiations can help you get exactly what you want in your new home and may help anxious sellers facilitate a quick sale. Here are some ideas to help you effectively negotiate the selling price of the home you want to buy.
Pre-qualified Buyers Have More Negotiating Power
It's a good idea to get pre-qualified for a mortgage loan before you start looking for a new home. Sellers prefer pre-qualified buyers, as this means the buyer is already approved for a mortgage loan. This minimizes the risk of an offer falling through if a buyer fails to qualify for a home loan.
The Fine Art of Negotiating
It's important to remember is that people take pride in their homes--even a home they are selling. If you want to negotiate a lower sale price based on the condition of the home, it's best to state your needs rather than criticize the condition of the home. A home inspection can serve as a basis for negotiating, especially if the inspection report recommends repairs.
There are various approaches you can use in negotiating a real estate contract, including:
- Offering a lower price for the property
- Asking for a credit of a specific amount of money for repairs (for example, an allowance for new carpet is a common type of credit to the buyer)
- Asking that the seller pay for all or part of the buyer's closing costs
Don't Be Afraid to Negotiate!
Most sellers expect to negotiate and will gladly entertain reasonable counter-offers. Whether buying or selling a home, people usually need to make a smooth transition between homes, and so they will generally cooperate to close the sale quickly. However, it's best to remain flexible in negotiations. The hard line "Deal or No Deal" approach may work on TV, but it may not work so well in negotiating the price of your new home. Your real estate agent can guide you in making effective negotiations.
Remember--relax, remain flexible, and negotiate your best deal.
About the Author
Karen Lawson has more than fifteen years of experience in mortgage banking. She earned an MA degree in English from the University of Nevada, Reno.
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