Home Purchase Negotiation

Home Buyers

Ten important questions you should ask your Sales Associate and why you should ask them.

  • 1. HOW LONG HAS THE PROPERTY BEEN ON THE MARKET?

    Why: The length of time a property has been on the market may indicate the seller's willingness to negotiate.

  • 2. HAVE THERE BEEN ANY PRICE REDUCTIONS DURING THE LISTING PERIOD?

    Why: The amount of any price reduction, as it relates to the overall purchase price, may indicate the seller's desire to attract an offer.

  • 3. HAVE THERE BEEN ANY OTHER OFFERS ON THE PROPERTY?

    Why: It will be helpful to know what offers may have been turned down and for what reasons.

  • 4. WHAT IS THE MOTIVATION OF THE SELLER?

    Why: Motivation is a key element in any negotiation. As an example, if the Seller has already purchased a new property, your ability to close quickly may be an attractive element of the negotiations.

  • 5. WHAT PERSONAL ITEMS ARE INCLUDED IN THE SALE?

    Why: Anything the seller is willing to leave behind that you won't need to buy when you move in has real value. Consider those items in your offer.

Neighborhood Specific

  • 6. WHAT IS THE PRICE RANGE OF SOLD PROPERTIES IN THE AREA?

    Why: Short market times may indicate a seller's market. If this is the case, you may face competition from other buyers

  • 7. WHAT IS THE AVERAGE TIME ON MARKET FOR PROPERTIES IN THIS AREA?

    Why: Short market times may indicate a seller's market. If this is the case, you may face competition from other buyers.

  • 8. WHAT IS THE LIST TO SALE PRICE RATIO IN THIS AREA?

    Why: This approach to establish value works best in a P.U.D. and/or where there are similar homes, lot sizes and improvements.

  • 9. WHAT IS THE AVERAGE SALES PRICE PER SQUARE FOOT OF RECENT SOLDS?

    Why: This approach to establish value works best in a P.U.D. and/or where there are similar homes, lot sizes and improvements.

  • 10. WHAT OTHER KNOWN FACTORS ABOUT THE PROPERTY OR NEIGHBORHOOD COULD AFFECT VALUE?

    Why: Review the Seller's Disclosure Statement very carefully with your Sales Associate.

Final Recommendation

If you will be financing the property, get preapproved for a mortgage prior to making your offer. This will show the seller your commitment and ability to perform. Preapproval can be extremely important in a sellers market.

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