Free Guide

Your Guide to Buying a Home

Everything you need to know to buy a home without an agent.

Image link

Negotiate Your Offer

Negotiating your offer is the time to really justify your price based on your strong knowledge of the market, home, what you know about the sellers, and your own budget. 

You’ll be in a stronger position if you have comps ready to go to present if needed, and if they were to present their own comps – you can justify why that one isn’t the same or why your comps are a better match to the home.

An escalation clause is used to help beat out other offers on the home without paying a lot of extra money unnecessarily. 

The way it works is that you set a base price for your offer. Then you include additional verbiage specifying that your offer will exceed any other bonafide offer by $x,000 more. You need to check if escalation clauses are legal in your state and area, and you may need to provide a redacted copy of the competing offer to prove that you do indeed have a competing offer at some price point.

Negotiation is everything.

The number one reason you should consider hiring a real estate agent is for their negotiation skills. Note that not all real estate agents are good with negotiations or numbers or understanding the market, or have the time to spend with each of their clients on these things.

This is one of our specialities. If you would like us to help, please reach out to us! Contact Liz at 970.412.1020 liz@homeguided.com to get started.

If you are intent on negotiating on your own, be aware that the buyer's side agent will have reservations about your skills and question your  comps, value justifications, and proposals. Make sure you know your stuff, and make sure you are doing everything legally.

If the buyer agent's buyers really want your home, then they are going to help you get through the process to ensure their buyers can close on their home. When I say that, I mean they are going to make sure the transaction goes smoothly, but they will not be working on your behalf. Make sure you follow along on the deadlines and know your states' requirements.

Understanding the market helps when you are talking with the sellers during negotiations. 

Look for similar properties in the area to see their listing prices and how long they've been on the market. This data can provide you with leverage during negotiations, especially if you find that homes are selling for less or staying on the market longer than expected.

If you can offer a quick close or pay cash, highlight these strengths. Sellers often value a deal that can be closed quickly and smoothly over a higher offer that might have more complications.

Lenders can go through a full underwriting process before you submit an offer somewhere and then provide same-as-cash type offers. Ask your lender if they provide this, or call us!

When you communicate with the seller, be respectful and professional. Express your appreciation for the property and any improvements they have made. Sellers are often emotionally attached to their homes, and a respectful tone can make them more willing to negotiate with you. We have also seen sellers opt to not do business with a nasty buyer, even if their offer was better.

While your target might be a particular price, be prepared to meet in the middle. If the seller counters your offer, consider increasing your offer slightly if it's within your budget.

If you are at your max budget, then try presenting to the sellers how much you love the home. Pull on their heartstrings about how you cherish the updates they did, how your family (if applicable) will enjoy growing up in the home, etc.

Once you reach an agreement, make sure all terms are clearly written in the contract. This includes the agreed-upon price, any repairs the seller has agreed to make, and any contingencies that must be met before the sale is finalized.

Premium Services

Need Any Help?

If you're trying to do it yourself and could use help in some areas, we're here for you. Check out our low-cost premium services.