Insider Secrets to Buying a Home at the Very Best Price
Many buyers are often surprised to find when they ask a real estate
agent what they should offer on a home that the agent is not permitted
by law to reveal to a buyer what they should offer in order to get the
offer accepted but without offering more than necessary. In most
instances, this is because the agent is a transaction agent or a
seller's agent. Unless the agent you are working with is a buyer's
agent, they are legally bound to represent the best interests of the
seller, not the buyer, which means they cannot reveal any information
regarding the lowest amount the seller is willing to accept. They are
duty bound to try to get as much money for the seller as possible. So,
where does that leave you as the buyer? There are some things you should
know in order to make sure you get your offer accepted while also buying
the home at the very best price possible.
One factor to take into consideration when deciding what you should
offer on a home is the type of property you are hoping to purchase. This
really can make a difference. If the property is a traditional seller
owned property, you need to tread lightly when considering making an
extremely low offer, because the average private owner is far more
likely to be insulted by such an offer than a bank that is holding a
foreclosure property. Of course, you should keep in mind that even if
the property is held by a bank, that does not necessarily mean that you
can offer an extremely low figure and expect them to take it. In most
instances, a bank owned property is already listed at a price that is at
least 15% below what other homes in the same area are priced at. This
means that even if you end up paying the full listing price, you will
still probably be getting a good deal.
You also need to take the condition of the property into consideration
as well. Obviously, a home that needs very little or no repair work will
be able to command a price that higher than a home that is need of a
little tender loving care. A qualified home inspector can always help
you in this regard by letting you know how much work the home will need
if you decide to purchase it.
How long has the home been on the market? This is a question you can and
always should ask. One thing you should know; however, is that it is
entirely possible that the home has been on the market much longer than
the listing sheet reveals. For example, suppose the home was originally
listed for 90 days and then that time period expired and the property
was re-listed with the same company. In that case, it is possible that
the home can be listed again as an entirely new listing and show a much
lower number of days on the market than is actually the case. Therefore,
instead of just asking how long it's been on the market, be sure to ask
how many cumulative days the property has been listed.
It is also a good idea to try to find out the number of previous offers
that have been made on the property. In the event that there are other
current offers, if you really want the property, keep in mind that you
are going to need to make sure that you present a very strong offer. Do
not expect the agent to reveal to you what the other offers are, because
they likely cannot do so. One way you can strengthen your offer without
necessarily offering more money is to make sure you are
pre-qualified for a loan.
This is often gives you more negotiating power with the seller. Most
sellers are savvy enough to recognize that a lower offer from a buyer
that is pre-qualified is far better than a higher offer from a buyer who
may or may not be able to eventually obtain financing.
Finally, take into consideration the type of offer you are making. A
cash offer will always be stronger than any type of offer which is
contingent upon obtaining financing. If you are able to offer a cash
offer, you very well may be able to succeed over even higher offers if
those other offers have any contingencies attached such as obtaining
financing or selling another property.
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