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Home Purchase Negotiation

Here are ten important questions you should ask your Sales Associate and why you should ask them.

Property Specific

1. HOW LONG HAS THE PROPERTY BEEN ON THE MARKET?
Why: The length of time a property has been on the market may indicate the seller's willingness to negotiate.

2. HAVE THERE BEEN ANY PRICE REDUCTIONS DURING THE LISTING PERIOD?
Why: The amount of any price reduction, as it relates to the overall purchase price, may indicate the seller's desire to attract an offer.

3. HAVE THERE BEEN ANY OTHER OFFERS ON THE PROPERTY?
Why: It will be helpful to know what offers have been turned down and for what reasons.

4. WHAT IS THE MOTIVATION OF THE SELLER?
Why: Motivation is a key element in any negotiation. As an example, if the seller has already purchased a new property, your ability to close quickly may be an attractive element of the negotiation.

5. WHAT PERSONAL ITEMS ARE INCLUDED IN THE SALE?
Why: Anything the seller is willing to leave behind that you won't need to buy when you move in has real value. Consider those items in your offer.

Neighborhood Specific

1. WHAT IS THE PRICE RANGE OF SOLD PROPERTIES IN THE AREA?
Why: This information is important since it will indicate the top and bottom of that specific market.

2. WHAT IS THE AVERAGE TIME ON MARKET FOR PROPERTIES IN THIS AREA?
Why: Short market times may indicate a seller's market. If this is the case you may face competition from other buyers.

3. WHAT IS THE LIST TO SALE PRICE RATIO IN THIS AREA?
Why: This information will indicate seller's past willingness to negotiate and by how much.

4. WHAT IS THE AVERAGE SALES PRICE PER SQUARE FOOT OF RECENT SOLDS?
Why: This approach to establish value works best in P.U.D. and/or where there are similar homes, lot sizes and improvements.

5. WHAT OTHER KNOWN FACTORS ABOUT THE PROPERTY OR NEIGHBORHOOD COULD AFFECT VALUE?
Why: Review the Seller's Disclosure Statement very carefully with your Sales Associate.

Final Recommendation

If you will be financing the property, get preapproved for a mortgage prior to making your offer. This will show the seller your commitment and ability to perform. Preapproval can be extremely important in the sellers' market.

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  Coldwell Banker
Sellers Realty.

985 G Street, Arcata, CA 95521
CalBRE#: 00448470
  (707) 822-5971- Phone
(707) 822-4337 - Fax
info@coldwellbankersellersrealty.com - Email
 
   
 
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