Kinlin Grover Ridge Realty



Posted by Kinlin Grover Ridge Realty on 11/19/2017

If youíre a first-time homebuyer you might be worried or anxious about the process of making an offer on a home. After all, negotiating isnít something most of us look forward to on a day to day basis and we try to avoid it when possible. When it comes to buying a home, however, negotiating is usually part of the process.

One of the benefits of working with a real estate agent is that they have the knowledge and expertise to help you out through the negotiation process. Not only will they help you formulate your offer, but theyíll also present the offer for you and handle the in-person negotiations.

Buyerís vs sellerís market

Whether or not the odds are in your favor depends on many things. One important factor is the state of the real estate marketing. In a sellerís market, which is what weíre in right now, there are more buyers looking for homes than there are sellers trying to sell them.

However, you can still edge past the competition in a sellerís market if you plan accordingly. This is when negotiation comes into play, and when effective negotiation can get your offer accepted where others are declined.

Time is of the essence

When youíre shopping for a home in a sellerís market, youíll need to be swift with your offer and counteroffers to stay ahead of other prospective buyers. However, being too hasty with your offers can seem imposing or reckless. Itís better to take a day longer to come up with a more effective offer than it is to make an offer that looks bad to the seller.

Be clear and concise

Just as youíre nervous making offers on a home, sellers are usually nervous fielding them. So, if you want to make things easier for you and your seller, make sure your offer is simple and straightforward.

This involves removing unnecessary contingencies and sticking to the contract basics--inspection, appraisal, and financing. If the seller receives another offer that is riddled with contingencies, they might prefer to work with you since you presented them with a simple contract.

Be prepared

Having your paperwork in order, getting preapproved, and making yourself available as much as possible will go a long way in the negotiation process. Now more than ever itís important to be well-organized.

Do your homework on the house and neighborhood youíre interested in. Make sure you know if there is a lot of interest in the area and the house in particular. This will let you know how much breathing room you have.

Getting preapproved will not only help you know the limits you can offer but it will also signal to the seller that youíre a serious buyer.





Posted by Kinlin Grover Ridge Realty on 1/15/2017

Whether youíre buying or selling a home, one of the most important parts of the process is the negotiation phase. This means different things whether youíre buying or selling a home. When youíre selling a home, youíre usually looking to get the most money for your home that you possibly can. If youíre buying a home, you want the lowest possible price for the home. Hence, the reason for real estate negotiations. Buyers and sellers must meet somewhere in the middle. For your consideration, weíll break down some of the most important aspects of the real estate negotiation process. The Cost Means Different Things As we stated above, buyers want the lowest price, while sellers want the highest price possible for a home. Whatever side youíre on, expect to meet somewhere in the middle. The price of the home has to make sense for both sides. The seller wants the sale of their home to make sense financially and the buyer wants to home to fit into their budget while getting the things they desire out of the home. The Financing Process Is Complicated If you have your mortgage fully approved prior to making an offer, youíll be able to shorten the closing time of the home. The reason for this is that the preapproval shows that all of the buyerís finances are in order and there will be no financial problems in the transaction. Sellers often prefer these buyers since they can be trusted to close properly and there wonít any issues with the real estate transaction. The property also wonít be on hold for months on end. The Date Of Closing Matters If sellers need to get their home off of the market fast, they can negotiate when the closing date will be. As a buyer, this matters because the next monthís mortgage payment is skipped once you close on a house. The closing date affects when exactly this payment doesnít need to be made, which can have a positive effect on your finances when itís timed right. Closing Costs Are Actually Paid Upfront Escrow is when the mortgage company holds the money for taxes and insurance, which is the prepaid closing costs. Buyers sometimes ask sellers to pay a portion of the closing costs. This could be a flat fee or up to 3 percent of the included mortgage. This could all have an effect on the asking price for the home. Just Like A Car, Homes Can Come With Warranties Buyers can ask for a warranty on the home, or the seller can offer one. This warranty typically covers the homeís appliances and utility systems. This provides a protection if things like the air conditioning or the dishwasher break after a certain period of time and need repair. This may make the home extra enticing to buyers and give sellers an advantage to get their home off the market quickly.