Negotiation Questions To Ask When Buying A home
Here are ten important questions you should ask your Sales Associate prior to submitting an offer on a property for sale and the reasons for asking.*
Property Specific
- 1. How long has the property been on the market for sale?
- Reason: The longer the property has been on the market the more willing the seller may be to negotiate.
- 2. Have there been any price reductions during the Listing Period?
- Reason: 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?
- Reason: If you can obtain this information it may be useful in negotiating to know if there have been offers on the property and why they weren't accepted.
- 4. What is the motivation of the seller to sell?
- Reason: Knowing the sellers motivation can be the key element in negotiating with the seller. For example, if the seller has already contracted to purchase another new property, your ability to close quickly may be an attractive element in the negotiations.
- 5. What personal items are included in the sale?
- Reason: Items the seller may be leaving behind that you won't need to buy when you move has real value. Consider adding these items when writing your offer.
Neighborhood Specific
- 6. What is the price range of SOLD properties in the area?
- Reason: This information is important since it will indicate the top and bottom of that specific market.
- 7. What is the average time on the market for properties in the area?
- Reason: Short market times may indicate a seller's market. If this is the case, you may face competition from other buyers.
- 8. What is the list to sale price ration in this area?
- Reason: This information will indicate seller's past willingness to negotiate and by how much.
- 9. What is the average sales price per square foot of recent solds?
- Reason: This approach to establish value works best in a P.U.D. (Planned Urban Development), Condominium and/ or where there are similar homes, lot sizes and improvements.
- 10. What other known factors about the property or neighborhood could affect value?
- Reason: Review the Seller's Disclosure Statement very carefully with your Sales Associate.
Final Recommendation
- If you will be financing the property, get pre-approved for a mortgage prior to making an offer. This will show the seller your commitment and ability to perform. Pre-approval can be extremely important in a seller's market.
* Depending on the type of agency relationship you have with your Sales Associate, he or she may not be able to assist you with these specific questions.
Source: Coldwell Banker Buyer's Guide
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