Simple Rules for Negotiating a Home Offer
After you’ve found the house of your dreams, there’s nothing more crushing than having an offer rejected. This is one area where you don’t want your emotions to get in the way of good decision making, so it’s important to have a game plan and stick to it no matter how you might be feeling about the situation.
Keep these rules in mind now so that you can stay cool under pressure when the time comes to make and negotiate a home offer.
Know your budget and get pre-approved
If a seller is weighing multiple offers, they might be more inclined to consider one that they know is secure, which means it’s important for you as a buyer to have your financial house in order before you sign any offer paperwork.
Sellers are busy people who want to get their home sold just as quickly as you want to buy it from them. Waiting around for a bank or mortgage lender could mean the difference between moving forward in the process and being left behind.
Once it comes time to make the offer, make sure that it’s within your pre-established budget. It’s very difficult, if not impossible, to go back if you bid too high and find out that you’ve busted your budget.
Be enthusiastic, but play hard to get
The most successful negotiations occur when the buyer is excited about the prospect of a sale, but also prepared to walk away if a deal does not happen on their terms.
Beyond a financial transaction, a home offer is your opportunity to tell the seller your story and why you think their home would be a good fit for you. Everyone loves a good story, and telling something compelling could put you over the edge toward having your offer accepted.
However, things might not go that way. In the world of home buying, this is where it becomes really important to set your emotions aside and be ready to walk away if needed.
Remember that there will always be other houses coming onto the market and you never know when you might fall in love with one again.