If you’re thinking about buying a home in DFW, you may not really know the best way to approach it. Sometimes buyers don’t consider the fact that most sellers will take a little less than asking price, but it isn’t as simple as saying “I’ll give you $200,000.” What do Dallas real estate agents know that you don’t? We have a few tips we think you’ll appreciate below.
Sellers often base the price of their homes on sentiment. When you own a home, you’re proud of it. Putting a home on the market strikes an emotional cord in sellers; when you try to haggle and get the price down by $20 or $30 thousand without a good reason, you could step on the homeowner’s pride and put yourself in a worse situation.
What’s the best way to go about negotiating a lower price?
Don’t expect the seller to pay for everything. The best way to alienate a seller is to offer a lowball price and then request they pay for repairs, closing costs, home warranties and other costs. Instead, consider how much you think these costs will add up to and build it into your offer. Even if you try to negotiate $8,000 off of the seller’s price and you pay a couple of thousand on repairs, home warranties, etc., you’re coming out ahead – and the seller will appreciate the fact that you’re willing to take over some of these costs and not nickel and dime them to death.
Show the seller you’re serious. There are lots of tire kickers when a seller is trying to sell a home, but when you have your pre-approval letter, earnest money and other documents in hand, you will be taken far more seriously and will stay in the mind of the seller. It’s also a good idea to express the things you love about the house, but keep it brief because a seller may get the idea that you’d pay more than asking price if you go on and on with the compliments. When it comes to offering a lower price, explain why. For instance, an obvious problem such as broken shingles on the roof or missing boards on the deck will cost money to repair and buyers know it. Mention any obvious issues when making your offer in a pleasant, conversational way.
Get on the bandwagon immediately. It’s important that a seller trusts a buyer, so do what you say you will do and don’t drag things out. From scheduling an inspection to getting earnest money to the title company, staying on top of things builds trust with the seller and lets them know they’re working with someone else who will take great pride in the home.
For a seller, the process of turning over a home that has sentimental value and memories attached is often an emotional one. This is why it’s important to use kid gloves and not simply throw lowball offers at them without any reason why. Approach it the right way, and you may be able to get the house of your dreams at an even lower price than you imagined.
Need help finding the perfect home for your family? At Team Nelson our team of Realtors is dedicated to making the process of buying a home easier for those in the Dallas area. Give us a call today for answers to your questions, guidance and peace of mind.