Real estate negotiation is an art – it takes a seasoned negotiator to secure the best terms in any transaction. Whether you’re one of many buyers interested in the home or you’d like to minimize closing costs, here’s how to negotiate like a pro.
Work with an experienced real estate agent in NJ
When buying homes for sale in Pennington, NJ, it’s important to work with a qualified agent who can help you craft a strong offer. Seasoned agents have a deeper understanding of the local housing market and act as your go-between during negotiations. David DePaola and Company Real Estate has nearly 40 years of experience in real estate. We offer the best representation on both sides of the table. Call us today for inquiries on NJ real estate.
Determine the seller’s motivations
When negotiating the terms of the sale, you must first gauge how motivated the seller is. Find out their reasons for selling. This will help you determine how much leverage you have. For example, a homeowner who must sell their current home before they can buy another is strongly motivated to sell. The same goes for a seller who is going through a tough divorce and needs to sell conjugal property to split the proceeds.
However, a seller who isn’t in a hurry to sell the home may be in the position to reject offers under asking price. This is usually true for luxury homeowners who would prefer to wait for the right buyer and guard their privacy.
An experienced agent can help you understand the seller’s motivation based on the following factors:
- Number of days the home has been on the market
- Number of offers that have been made
- Whether or not the seller is on a deadline.
- Whether or not the home has been foreclosed on.
Make a reasonable offer
No matter how motivated the seller is, make sure you’re making a reasonable offer. That means being realistic about the price you’re offering for the property and making sure that you can secure financing for the offer amount. Refrain from making a lowball offer, which can be insulting to the seller and doesn’t give much leeway for future negotiations.
Get pre-approved for a mortgage
Getting pre-approved for a loan before negotiating with the seller can be an excellent strategy. This gives you an estimate of how much you’re likely to be approved for and how much you’ll need for down payment. It also shows the seller that you’re serious about purchasing the home and that you’re likely to secure financing if they accept your offer.
Put a time limit on your offer
Give your offer a reasonable deadline. This will encourage the seller to move quickly and make a decision. If they counter your offer, you’ll have time to negotiate or move onto another property.
Contact David DePaola and Company Real Estate at 609.883.4161 or email to David(at)DePaola(dotted)com for professional real estate representation. As a premium boutique agency, we provide personalized, hands-on service to help you negotiate the best terms for your home purchase.