The Secret to Home Bidding Wars When Buying a Home
Once you find a home you want to buy, you still need to negotiate with the current homeowners. From making an offer to closing on a home, you should consult your real estate agent who can help successfully secure your new home, especially if entrapped in a bidding war.
It can be difficult to know what kind of initial offer to make on a home. You want to pay as little as possible, but there is a limit on what sort of bid home sellers might reasonably be expected to accept.
Look at Other Comparable Properties
If a property has been on the market for some time without selling, the home seller may be more prepared to accept an offer in the interest of closing a deal and moving on with their life.
If comparable properties are selling for less, then it may be time to present a lower offer. It may be appropriate to note these factors, or the other reasons for the offer. Such evidence can help home sellers see the price rationally rather than emotionally.Clear communication with the home seller is important. They may end negotiations prematurely if they think an offer is the highest a prospective buyer will go. At the same time, when you appear overly eager for a property, you will likely pay more.
Know How Much You Are Willing to Pay on a New Home
What matters most is not how much you "should" be willing to pay, but how much you actually are willing to pay. If an amount is too high for you, you should be clear with your agent from the start to avoid wasting anyone's time.
Another factor is the terms of the deal. Closing costs, furniture, landscaping equipment and other items or services can also be negotiating points, and a home seller unwilling to budge below his price point might not mind a few concessions on peripheral questions.
It may be a good idea to find alternative homes you are interested in before entering negotiations. Just having another potential property, even if it is a definite second place, may help you maintain objectivity. Tactfully letting the home sellers know that their property is not the only option may also be an effective way to tilt negotiations in your favor.
It's also important to be willing to walk away. If a home is attractive but the price is too steep, you must maintain your ability to leave and seek a better deal. The seller may eventually reconsider his or her offer
