How Home Sellers and Buyers Can Negotiate Price
Whether you’re selling or buying, the steps that people have to go through when transferring property ownership can be tedious. With hidden costs and taxes around every corner and the possibility of getting overcharged or underpaid: many are trying to find a more straightforward route. Negotiating directly with the buyer or seller opposite of you can seem nerve-wracking, but it doesn’t have to be! Here are the top tips to help any buyer or seller get the deal they need!
Heavily consider the market that you’re in! If the market is currently in a buyers’ market phase, there are presently more sellers than buyers. In this type of market, sellers have to realize the steps they need to take to sell at all, much less make enough money off the sale. There are many more people looking for homes in a Sellers’ Market than there are homes for sale. This type of market means that home prices will go up, and their properties will sell faster. For buyers, this can be bad news because the cards are no longer in their favor.
Most people end up being both the buyer and the seller at some point, so it’s fair to assume that you’ll need to stay informed on both sides.
Buyers hold a lot of power in their money. Their bargaining chips come in the form of how their money is accessed, how much they’re willing to pay, and how quickly they can spend it. Sellers prefer cash payments because it means they won’t have to deal with a third party in banks or loans. Unfortunately, not every buyer has a few hundred thousand dollars sitting around that they can use. A bank loan is still a fantastic way to secure the funds, but their trepidation makes sense.
Buyers can also bargain with what work they’d like to have done before purchase or what fees they’d like covered. If you’re in a Buyers’ Market, you can even demand that the sellers hide the closing costs so that you don’t have to pay those extra four to ten thousand dollars.
Selling can be expensive, and losing money on how much you get to sell your home can be a hassle. While you’re chipping away at a seller closing costs calculator, you’ll also need to pay attention to your bargain pieces. You can help sell your home faster by including the furniture in the sale or offering to cover closing costs. If you’re in a seller’s market, you can boost the price of your home by encouraging a bidding war between multiple interested parties. Unfortunately, bidding wars don’t happen for every house, and many may notice their property sitting on the market for months. If that’s the case for you, work to dress up your home and paint it to update it. Sometimes a fresh coat of paint, or a new oven and stove, can increase your home’s value by up to ten percent.