In real estate, negotiating the asking price for a home is common practice. Naturally, sellers want to achieve the maximum value of their home while buyers hope to have a price fall within their budget. Your real estate agent serves as your negotiation advisor and helps find the right price… They effectively determine what you are most comfortable with offering. It’s important for homebuyers to have all of their financial ducks in a row before they make an offer. This includes completing the pre-approval process and obtaining a letter from the lender identifying your loan details…essentially how to make an offer. The strategy is dependent on several factors. Type of loan – dollar amounts for purchase price or any credits you might request to cover costs and prepaid expenses. Remember, you have the right to negotiate everything. This includes the home inspection, especially if there is a laundry list of repairs that need done. Maybe even most importantly, avoid LOWBALLING an offer. This may alienate the seller and result in future offers being rejected. Get educated. We can teach. Ask us how.
Not intended as real estate, accounting or investment advice. Contact your financial representative for more information.