Home Purchase Negotiation
10 Questions To Ask Before Making an Offer
The dynamics of real estate markets, in Davis and elsewhere, are constantly changing. A market that favors sellers can quickly change to one that is flooded with homes for sale and very few buyers. Information will be your best tool when it comes time to negotiate for the purchase of a home. Information about the home, the neighborhood, and the seller. As your Realtor, I will get you the information you need to make a smart purchase.
Below are ten questions you should ask before making an offer on a home, and why these questions are important.
Specifically About The Home
- What Personal Items are included in the Sale?
Why? If the seller is willing to leave certain items, you won't need to buy them when you move in. Think refrigerator or washer/dryer or backyard shed. These items have value, take them into consideration when making an offer.
- How long has the home been on the market?
Why? The longer the home has been on the market, the more likely the seller may be to negotiate.
- What is the motivation of the seller?
Why? Motivation is a primary element in any negotiation. Perhaps the seller has already purchased another home or has been transferred to another city and has to be there by a certain date.. Your ability to close quickly may be worth more to the seller than a higher sales price.
- Have there been any other offers on the home?
Why? Perhaps others have made offers that have been turned down. It might save you a lot of time and trouble to find out what those offers were and why they were turned down.
- Have there been any price reductions since the home was listed?
Why? If the seller has reduced the price since listing the home, and the amount of the reduction, may indicate the sellers dsire to attract a quick offer. It also could indicate a motivated seller, which helps your negotiation position.
Neighborhood Specific
- What is the average time on the market for homes in this area?
Why? Short market times are an indication of a sellers market and you may have to act quickly because of competition from other buyers.
- Of the homes recently sold, what was the average price per square foot?
Why? If the neighborhood has many similar homes and similar lot sizes, this can be a good approach to establish the value of homes currently for sale.
- What is the price range of homes recently sold in the neighborhood?
Why? This information will indicate the top and bottom prices for homes in the area.
- What has been the ratio of List Price to Sale Price recently?
Why? This information will indicate how willing sellers have been to negotiate, and by how much.
- What other factors about the neighborhood or the home could affect the value?
Why? Review the Sellers Disclosure Statement carefully with your Realtor. There could be other factors, such as environmental issues in the neighborhood or a fire or flood in the propertys' history, that should be taken into account.
