When negotiating a home price as a buyer, its not necessarily about the money. My last two buyer transactions where I was a buyer’s agent negotiating on behalf of my client, we were not the highest bidder, yet we were the ridding bidder.
Yes, my buyer client’s offers were several to five thousand dollars less than the highest offer the sellers received on their home.
Now don’t get me wrong you can’t be 10’s of thousands of dollars less than other offers and expect the seller to choose your offer.
Here, the Massachusetts Real Estate climate has become very heated. Many home are having multiple offers and are going over asking. Buyer’s need to come to the table and put their best foot forward.
Your Buyer’s Agent Needs to Advocate for you
As a listing agent, it is not unusual for me to receive unsolicited offers from “buyer’s agents” on my listings. The offer is just sent, no phone call. Or, if I try to reach them the phone goes unanswered.
As a buyer’s agent, I listen. I call the listing agent. I try to figure out where the seller is coming from. I listen for key points. Are there dates that are important to the seller, does the seller have particular concerns, etc….?
I also project a professionalism. The listing agent knows I know what I am doing and the deal will close. I try to instill a sense of confidence in the listing agent that I will bring the deal to a successful completion.
After talking to the agent, I try to structure an offer with my buyer client, addressing any concerns that the listing agent and/or seller may have.
I promptly send the offer to the listing agent and call them immediately. I talk about the strengths of my clients. I advocate the best I can for my clients.
Negotiating a Home Price is not Always About the Money
So the last two offers I had accepted were not about the price. In both cases the sellers had lost deals over financing or home inspections. This tells me what I have to sell to the listing agent.
Offer number one we ensured the seller that we had read the sellers disclosure and we would not be asking for any concessions based what was disclosed on the sellers disclosure.
Offer number two we removed the financing contingency knowing that I would not be putting my buyer at risk.
In both cases the buyers were already above where they wanted to spend, I told them to put their best foot forward and at least try. We did. And, both buyers had positive results.
A Seller’s and Listing Agents Biggest Fear
A home seller and subsequently their listings agents biggest fear is accepting an offer and not being able to close with the buyer. A house always seems to become stigmatized when that happens. Buyer’s start to wonder what is wrong with the house.
Never mind the time and effort that the seller puts in to close on their property. In both cases, I was able to get across to the seller and the listing agent….. this deal will close!
Again, you are not going to get an offer accepted that is way off from the other offers on the table. But a good buyer’s agent who advocates on your behalf, is attuned to what is going on and can address sticking points for a seller can help close the gap between a few thousand dollars and even up to 5 or 10 thousand dollars, making your bid the winning bid on the home you want.
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This article, Negotiating a Home Price is not Always About the Money, was written by Kevin Vitali of EXIT Group One Real Estate. Are you looking for a Buyer’s Agent to help you make the most of your next home purchase? Call me at 978-360-0422.
