Home Purchase Negotiation
Ten Most Important Questions
Property Specific |
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1. | How long has the property been on the market? | |
Why: The length of time a property has been on the market may indication the seller's willingness to negotiate. | ||
2. | Have there been any price reductions during the listing period? | |
Why: The amount of any price reduction, as it relates to the overall purchase price, may indicate the seller's desire to attract an offer. | ||
3. | Have there been any other offers on the property? | |
Why: It will be helpful to know what offers may have been turned down and for what reasons. | ||
4. | What is the motivation of the seller? | |
Why: Motivation is a key element in any negotiation. As an example, if the seller has already purchased a new property, your ability to close quickly may ge an attractive element of the negotiation. | ||
5. | What personal items are included in the sale? | |
Why: Anything the seller is willing to leave behind that you won't need to buy when you move in has real value. Consider those items in your offer. |
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Neighborhood Specific |
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6. | What is the price range of SOLD properties in the area? | |
Why: This information is important since it will indicate the top and bottom of that specific market. | ||
7. | What is the average time on the market for properties in this area? | |
Why: Short market times may indicate a seller's market. If this is the case, ,you may face competition from other buyers. | ||
8. | What is the list to sale price ratio in this area? | |
Why: This information will indicate seller's past willingness to negotiate and by how much. | ||
9. | What is the average sales price per square foot of recent solds? | |
Why: This approach to establish value works best in a P.U.D. and/or where there are similar homes, lot sizes and improvements. | ||
10. | What other known factors about the property or neighborhood could affect value? | |
Why: Review the Seller's Disclosure Statement very careully with a member of our team. | ||
Final Recommendation |
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If you will be financing the property, get preapproved for a morgage prior to making our offer. This will show the seller your commitment and ability to perform. Preapproval can be extremely important in a seller's market. |