Let's say you've fallen in love with a home. It's just the right size and it's in a lovely community. It's just your type, too: you can envision yourself living and thriving within its rooms. You've practically picked out the color scheme for the kitchen. The only problem is, the seller's asking price is above your budget. How can you negotiate for a price you can afford?
Here are a few tips that can help you out. Part 1 detailed how you can use research and facts toward your cause. In this case, learn how you can package your offer to appeal to the seller, even if it’s a figure less what they’re asking for.
3. Offer a larger downpayment.
The standard downpayment is at 20% of the total price. Should your finances permit, offer a downpayment at larger percentage, such as 25%. Even if your total offer is less than what the seller is expecting, a larger downpayment makes it more attractive, especially if the seller is looking for fast cash. As an added incentive, it's also best to get financially pre-approved to offer the seller a good guarantee.
4. Be flexible on settlement dates.
Even though your offer is less than the asking price, you can make it appealing by way of some compromises, such as being flexible on when the seller needs to move out and when you're moving in. Allowing the seller to stay in the home for longer works in their favor, and could possibly get you a discount on the price.
5. Present yourself as a serious, qualified buyer.
Get pre-approved. Present yourself professionally and with good demeanor: no on likes doing business with people they don’t get along with. Work and coordinate with the seller and/or their broker toward a smoother transaction. Convince the seller that you're a sure bet: you have genuine interest in buying their home and you can act quickly, according to their preferred timetable or estimated completion date. With these in your corner, the seller could take your offer over another buyer who's still unsure and might pull out at a later date.