In a perfect dream, the seller would immediately agree to your offer and you would spend the remaining days, before the big move, thinking about which color coat will look good on the walls or if you should buy new furniture now that you have a guest room.
You never know, this might happen.
Let’s have a look at the other scenarios, where the seller rejected your offer. They might have done it due to a lowball counteroffer, they might have offers from multiple buyers or they simply don’t want to sell to you (Yes, this can happen).
Let’s say the seller came back with a counteroffer. Now, the ball is in your court. You have the chance to make the goal and at a time like this, you definitely need directions from a pro – A real estate agent. To aid your agent during the negotiations, you also need to be well-versed with the information circulating in the real estate market. Get familiar with the trends and prepare your own negotiation tactics to add your two cents.
Here are five rules that will help you negotiate alongside your real estate agent like a pro:
Received the Counteroffer? Then Act Now!
Once you get that counteroffer in your hands, give the client feedback with 24 hours. Since nothing has been set in stone yet, there’s a chance that if you take too long to respond, the seller will go with another buyer.
Raise the Price in Your Counteroffer
We are not talking about overpaying, but seriously think about what you can afford in a monthly mortgage. If you initially responded with a low ball offer, the seller might take offense and take back the offer.
After you have decided on a comfortable price, let the agent work their magic. This time around, tell them to come prepared with new comps to convince the seller that the price increase is justifiable.
Increase the Deposit on the House
The deposit, also known as the earnest money is the price you pay to stop the seller from courting other buyers. Typically, earnest money ranges between from 1% to 3%. If you whole heartedly believe that this is the house you want, then increase this amount to 5% or consult with your real estate agent to determine a good percentage in your situation.
Lose a Few of the Contingencies
Waiving a contingency is very risky. However, if you are familiar with the neighborhood, then you may let go of a few things. While structural repairs and a home inspection are out of the question, you can let go of termite inspection and small electrical repairs.
Pick Up the Home Warranty
A home warranty usually costs several hundred dollars. You can leave this out of the contract and buy it separately. However, make sure you buy it as soon as possible along with your homeowner’s insurance because both give you security for your possessions and home’s structure.
Negotiating is tough, therefore it is better left at the hands of a real estate agent. Losing your dream house can be very disappointing but do not go overboard with your counter offer or you might find difficulty in the future, in paying your debt.
Pick Up the Title Policy
A title policy is an insurance policy which insures you, the buyer against any financial loss from defects in the title. This offer to pick up the title policy can sometimes help push your offer over the finish line and secure the contract.
Agree to close at the Sellers preferred Title Company
Unless you have some huge preference about title companies, this is another “break or make” the deal offer.