Feb 042011
 

Sellers are “hurtin’ for certain” right now. Between the bad weather, the lengthy marketing times, falling prices and the lack of Buyers, Homeowners who want to sell their homes NEED YOU, The First Time Homebuyer NOW more than ever!

Not that you can “steal” a house, but you can certainly swoop in and get the deal you want on the home you want at the price you are willing to pay.

Get your “Thick Skin” on, get out there and Shop for the home you want and MOVE ON when the Seller or their agent gives you a hard time. There are plenty of homes and plenty of Sellers ready, willing and able to agree with you on a price.

If the Sellers and their Realtors seem extremely happy to see you, well, THEY ARE!!!

Use that happy moment to your advantage.

But don’t approach your shopping for a home in a haphazard way. No sir. Get all your “ducks in a row” before you brave the elements this weekend. Have your Mortgage financing lined up, your attorney in place and your Home Inspector ready to roll at a moment’s notice.

While it’s great that you as a Buyer are showing up to the (rather dull) party, you still need to demonstrate that you are SERIOUS about buying. That’s going to help you in a big way when you negotiate with the Sellers.

My pal Phil Faranda recently blogged about making offers in writing. He was writing mostly for fellow Realtors, but his words hold a lot of weight for you First Time Homebuyers, too.

I’ve posted a primer on the Five Steps To Making An Offer here on tcurranmortgage.com before.

 Posted by at 11:58 am

  2 Responses to “HOW TO BUY A HOME: NEGOTIATE!!!”

  1. One thing buyers need to do is differentiate between trying to get a deal vs. trying to get a steal. Too many are not-so-serious and looking for a steal. In Westchester – you ignore the comps at your peril. I have had a couple of buyers who really didn’t “get it” and refused to look at the comps. They wanted what they wanted and thought they could name the price. The result in one case was the listing agent doing the exact same thing I would have done were I in their shoes. “We are through with this buyer.” When my buyers had a mea culpa over the initial offer – they came back …but the increase was too small and the bad blood created by the first offer caused them to be rejected out of hand.

    Deals are available – steals are not.

    • Ruthmarie you hit the nail on the head. Too many people think negotiating means getting the house at the lowest price. That’s not negotiating, and that’s not demonstrating how serious you are as a Buyer.

      That seriousness, btw, starts with yourself. The Buyer must ask 2 questions before heading out into the homebuying marketplace.

      Question 1: Do I really want to own my own home? The answer to this question comes only from yourself.

      Question 2: What is the maximum price I am willing to pay for a home? The answer to the second question come from yourself, but with assistance from your Mortgage Professional once you’ve been prequalified and you realize your tolerance for a specific monthly payment. I mean that sincerely because you might find you are qualified based on your income for a mortgage payment of $4500 a month, but, who the heck wants to write a check for that much money?!?! If your tolerance is for a monthly payment of $2600 monthly, then your Mortgage Professional should guide you accordingly.

      Answer those two questions then you go out and buy a home and negotiate. When Ruthmarie says, “…differentiate between trying to get a deal vs. trying to get a steal,” she means that for the Buyers who have asked and answered Questions 1 and 2. She’s on the mark, too, when she says, “Deals are available — steals are not.” But those deals are available for realistic, serious Buyers. Do your homework, because buying a home is WORK, then Go For IT!!!

      Thank you Ruthmarie for your most excellent comment!

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