Ask for Fewer ConcessionsAt a mortgage settlement, home buyers have to pay closing costs for taxes, lender’s fees, and title company fees. Closing costs vary by location, but you can expect to shell out between 3% and 4% of the home’s sales price. The seller pays an additional 1% to 3%. (Our site has a closing cost calculator you can use to get a rough idea of what your closing costs might be.) When making an initial offer, you have the option to ask the seller for concessions — a settlement paid in cash to help you offset your share of the closing costs. (This move is less feasible if you’re going up against multiple offers.) Concessions effectively lower the seller’s net proceeds from the sale. Making a counteroffer that removes the concessions you would have otherwise received at settlement puts cash back in the seller’s pocket — and can improve your bid.
- Know When to Walk Away It’s important for you to trust your gut – and your agent – when negotiating with a seller. If your agent says a deal is bad for you, be sure to listen. If you’re negotiating and don’t want to make any more trade-offs, walking away would be the best option. Although it’s a tough decision to make, especially since negotiating is tough and exhausting, you need to know that a better deal is out there for you. And after walking away from a sour deal, you’ll know that next time you will have a more informed experience.
Raise Your Price (Within Reason)While you obviously don’t want to overpay for a house, you may have to up the ante — especially if you initially made a lowball offer. Lean on your agent’s expertise to determine how much money you should add to the sales price to make it more enticing to the seller. Then, through their powers of persuasion, I can make the counteroffer look even more attractive by pointing out similarly priced “comps” — recently sold homes in your area that are comparable in terms of square footage and features. As I negotiate, it can feel like things are escalating quickly. It’s stressful. You may feel a sudden urge to do whatever it takes to win. Before you go overboard, there are we will keep in mind:
- You can’t exceed the monetary confines of the pre-approved mortgage you received from your lender.
- You shouldn’t overextend your budget.
- Because your counteroffer has to be an amount you’re comfortable spending on a home. You want that new house and to keep living your life. Plus: You’re not out of options yet.
2 beds, 2 full baths
Home size: 1076
Added: 02/10/21, Last Updated: 02/17/2021
Property Type: Unit for Sale
MLS Number: VAAX255482
Subdivision: The Monarch<!--
List Price: 585000.00-->