Real estate inventory is low in many areas of the country so we are seeing bidding wars again. Whether you are on the buying or selling side some of these tips might help you.
Low Ball Offers – everyone wants a “deal,” but in a sellers’ market this won’t cut it. The question should be, is the listed price a fair reflection of the home’s worth?
As the Seller: if you receive a Low Ball Offer, don’t take it personally. Remember, everyone wants a deal. It may just be a negotiating tactic. Your agent should have a conversation with the buyer’s agent as to why the offer is low and see where and if the offer is worth countering.
As the Buyer: Making a bunch of Low Ball Offers isn’t going to find you a deal. Find the right property and offer a fair price. You always want room to negotiate but you have to get a counter offer to even start negotiations.
Flexibility – As Seller or Buyer: It’s not always about the “price.” Terms might even be more important to either the seller or the buyer. Timing of the closing, move-out/move-in dates, request for repairs, you get the idea. These kinds of things can be of equal importance. This is where your broker/agent can be of great help navigating a deal.
Commitment – As the Buyer: if you want a seller to stand up and take notice of your offer, a large earnest money deposit can get someone’s attention. Also, the bigger the down payment, usually the more attractive the offer.
As the Seller: Counter sooner rather than later.
Be prepared – As the Buyer: Have the funds available for the deposit, have proof of down payment funds, and most important, be preapproved by a lender. Also, there is a difference between prequalified and preapproved.
Counteroffers – As the Buyer: not everyone who made an offer will always receive a counter so, if you do, that means you were close. Now you need to make a decision to take it or leave it. My husband often says that buyers don’t have the “take it” mind set and you must in today’s market.
As the Seller: Make counteroffers you are willing to accept.
Negotiating with the offer(s) you have is important – As the Seller: There is an old saying in real estate that “your first offer is your best offer.” It’s said to be true about 90% of the time and I will say I have found that in my own experience. The instinct of a seller is that if an offer (or many) comes in quickly, they must have listed too low and should hold out for a better offer or multiple offers. The longer a property stays on the market, the less likely you will get a full price offer. Much of this does depend on the market and market timing. But remember, the longer a property is on the market the more it’s costing in holding costs so your profit is being diminished. Also remember, it’s not always about the money for the buyer.
This content is intended to provide educational information only. This information should not be construed as individual or customized legal, tax, financial or investment services. As each individual's situation is unique, a qualified professional should be consulted before making legal, tax, financial and investment decisions. The educational information provided in this article does not comprise any course or a part of any course that may be used as an educational credit for any certification purpose and will not prepare any User to be accredited for any licenses in any industry and will not prepare any User to get a job. Reproduced by permission from OTAcademy.com click here for Terms of Use: https://www.otacademy.com/about/terms
Editors’ Picks
AUD/USD: The hunt for the 0.7000 hurdle
AUD/USD quickly left behind Wednesday’s strong pullback and rose markedly past the 0.6900 barrier on Thursday, boosted by news of fresh stimulus in China as well as renewed weakness in the US Dollar.
EUR/USD refocuses its attention to 1.1200 and above
Rising appetite for the risk-associated assets, the offered stance in the Greenback and Chinese stimulus all contributed to the resurgence of the upside momentum in EUR/USD, which managed to retest the 1.1190 zone on Thursday.
Gold holding at higher ground at around $2,670
Gold breaks to new high of $2,673 on Thursday. Falling interest rates globally, intensifying geopolitical conflicts and heightened Fed easing bets are the main factors.
Ethena Labs launches new UStb stablecoin backed by BlackRock's BUIDL token
Ethena Labs announced on Thursday that it has released a new stablecoin product, UStb. The new stablecoin will be fully collateralized by BlackRock's USD Institutional Digital Liquidity Fund and function similarly to a traditional stablecoin.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
RECOMMENDED LESSONS
Making money in forex is easy if you know how the bankers trade!
Discover how to make money in forex is easy if you know how the bankers trade!
5 Forex News Events You Need To Know
In the fast moving world of currency markets, it is extremely important for new traders to know the list of important forex news...
Top 10 Chart Patterns Every Trader Should Know
Chart patterns are one of the most effective trading tools for a trader. They are pure price-action, and form on the basis of underlying buying and...
7 Ways to Avoid Forex Scams
The forex industry is recently seeing more and more scams. Here are 7 ways to avoid losing your money in such scams: Forex scams are becoming frequent. Michael Greenberg reports on luxurious expenses, including a submarine bought from the money taken from forex traders. Here’s another report of a forex fraud. So, how can we avoid falling in such forex scams?
What Are the 10 Fatal Mistakes Traders Make
Trading is exciting. Trading is hard. Trading is extremely hard. Some say that it takes more than 10,000 hours to master. Others believe that trading is the way to quick riches. They might be both wrong. What is important to know that no matter how experienced you are, mistakes will be part of the trading process.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.