Linda Linfoot - Keeping You Informed
Table Talk
Negotiating the purchase agreement is arguably the most challenging aspect of buying a home, particularly in markets that favor sellers. To strengthen your position at the negotiating table, consider the following advice.
- Come to the table having already been pre-approved for a mortgage. A buyer who's pre-approved is one with leverage, and creates a greater chance of a faster and smoother transaction. The seller won't have to wait long for you to obtain financing, nor worry that the deal will fall through altogether because you didn't qualify for financing.
- Selling your current home before buying a new one has its advantages. Do so and you'll be in a position to make a cleaner offer to sellers — that is, an offer not conditional upon having to first sell your home. And in sellers' eyes, a buyer who can make such a contingency-free offer is more attractive than one who can't.
- Work with a real estate sales representative. At the negotiating table, information is power — and your real estate sales representative is armed with all the information you need to come out on top, such as the selling prices of comparable homes. Also, checking your emotions at the door is key to a successful negotiation, and your representative can help you do just that.
- Don't put all your eggs in one basket. Make sure you have options, other properties you'd just as happily bid on — again, something a real estate sales representative can help you with — so you don't find yourself suffering from "the one" syndrome and desperate at the negotiating table. In other words, be ready to walk away.
