Is there a secret to good negotiating?
There are several cardinal rules to negotiating effectively. One is, we do the homework, and learn as much about the seller, the listing agent and the property as we can. Another is that we to play our cards close to our vests and not reveal too much information to the other party or their agent. We try not to get rushed into any decisions, no matter how tempting it may be, although, over the past several years as the Dallas area has become one of the hottest real estate markets in the US, we have to make decisions very quickly to avoid having the best homes sold out from under us.
What contingencies should be put in an offer?
Most offers include two standard contingencies: a financing contingency, which makes the sale dependent on your ability to obtain a loan, and an inspection contingency, which allows us to have professionals inspect the property to our satisfaction. Other contingencies can include a contingency for selling an existing home before being able to purchase another, and a contingency for the seller to make repairs prior to closing.
How is the price set?
The purchase price is determined through negotiations. We will know the relative value range of the home; we just have to convince the seller that the house will only sell within that range. Negotiations are a give and take situation. We have an amount we have determined to pay for the house and we have a strategy to get that price and terms. Sometimes the seller will not agree with our price, and, at that time, you have to determine whether or not it is worth paying more than we wanted to One of the best strategies to get a seller to move off of his price is to stall longer than most people would want to. Time usually works to the advantage of the buyer.... except when it doesn't...
Are low-ball offers advisable?
A low-ball offer is a term used to describe an offer on a house that is substantially less than the asking price. While any offer can be presented, a low-ball offer only succeeds when either the seller or the house is under duress. If the seller must sell quickly, it is more likely that a low ball offer will work. Likewise, if the house is grossly overpriced, the low-ball offer has a better chance of working.
What is the difference between market value and appraised value?
The appraised value of a house is a certified appraiser's opinion of the worth of a home at a given point in time. Lenders require appraisals as part of the loan application process; fees range from $350 to $400.
Market value is what price the house will bring at a
given point in time. A comparative market analysis is an informal estimate of
market value, based on sales of comparable properties, performed by a real
estate agent or broker. Either an appraisal or a comparative market analysis is
the most accurate way to determine what a home is worth.