Purchasing a house is probably the biggest investment several people will ever make in life. This investment does not involve just finances, there are also emotional, memory and equity investment, being a place one would likely live for years.
Losing out on the opportunity to acquire a dream home could be simply because of some avoidable negotiation mistakes when purchasing the house. Here are some common buyer mistakes made in real estate negotiation and how to avoid them.
Making a Very Low Offer
Making a low offer itself is not the problem. The problem is making an insultingly low offer. If you’re thinking of buying one of the houses for sale in the Bay area, making an offer that appeals to both buyer and seller is essential, if not, the seller could suddenly clam up and refuse to continue further negotiation talks.
Factors like the actual value of the house, prevailing prices in the bay area and whether or not purchase includes furniture, etc., should be taken into consideration when making an offer. On the other hand, most sellers would indicate the negotiation range, which the buyer should take care not to go below. Trying to strike a good deal is normal, but should be done with tact.
Act before thinking
This is what happens when a buyer wants to take advantage of that insanely awesome offer – a house being sold for less than half it’s normal market price. Take some time to carry out relevant related research before enthusiastically screaming a ‘yes!’.
For every offer gotten for a house, the buyer should make a counter-offer, buyers actually have that right. Quickly accepting an offer the first time it was made could be a recipe for disaster or even scam. Such buyers appear to sellers as desperate, making it easy to extort more money.
Revealing too much information
Anyone who has ever been involved in a form of negotiation knows that revealing too much can backfire. Until an agreement has been made to sell the house, a buyer is under no obligation to answer each and every question of the seller. It’s best to keep a tight leash on information revealed before close of sale.
Forget to Write a Good Proposal
In addition to not making insultingly low offers, wisdom dictates offers should be made in writing. Turning offers to well crafted proposals increases the buyer’s respect in the eyes of the buyer. Moreover, it helps to have well structured documentation about the house’s purchase transactions.
A well written proposal is a powerful negotiation chip, without one, a buyer can be easily manipulated by the seller. The proposal is used to expressly outline what the buyer’s offer for the house is, reasons for making the offer and obligations expected to be included in the offer.
Working with a realtor to buy a house is advised, nevertheless learning what can affect a bay area real estate negotiation is to the buyer’s advantage.