Now that the housing boom is beginning to lose steam, buyers are beginning to gain an advantage. The days of paying the asking price or getting into a bidding war are gone; today, opportunities abound for the savvy buyer.
Unlike the heydays of 2004, when even lemons got snapped up overnight, homes now stay on the market for a longer time, especially when they aren’t priced right. Several buyers who got into the market late tend to price high; you can’t afford to pander to their vanity. Usually, the longer the home is listed, the more likely that the owner will accept a lower offer. Check with the agent how long homes normally stay on the market; that will give you an estimate of whether the owner will be flexible.
Don’t rush in to make an offer, or show your interest; that tips your hand, letting the seller dictate terms. Quite often, you can find alternate homes that offer a similar level of accommodation and comfort; and no home is going to be a perfect fit. There’s always something that you would want different. Stay calm, think it through, and don’t rush.
Find out why the seller is selling. Is he stuck with an ARM and a leg? Or is he moving out of town, and needs to close out before he can shift? If there’s reason for him to want a quick deal, he’s more likely to be reasonable. Conversely, if there’s no rush, you don’t stand a good chance of bringing him down; maybe you should check out something else.
Make a lowball offer – and back it up with proof of pre-approved financing, plus a fast deal. For a seller who needs to close fast, time is money; you could offer up to 15% lower and still get the deal through.
If the price is unusually firm, and yet you want to go ahead, look for extras; closing costs, repairs, a second mortgage, or some other. You could trade these for the concession you’re making on the price.
Last but not least, be sure that you’re getting a real deal; make sure of the inspection and valuation, as also any tenancies or liens. When there are plenty of opportunities around, you don’t want to lose out.
