You’ve Found “The Home.” Now What?


The long, tiring search is over and you’ve kissed a lot of frogs. You've finally found your dream home and want to make an offer on the property. How do you know how much to offer and if you’re getting the most value for your money in this Brandon MB market?


The offer phase of purchasing a home isn’t always straightforward and you need to at least know the market on homes in that area so you can determine if you’ll be getting the fair market value for that home. Ask your real estate agent to go through neighborhood  comparable actives and solds with you.  This report should be helpful with the offer process.


Lowballing is a common term in the world of real estate. It means that you’re offering to buy the house for a number that’s far below the market value. You run the risk of insulting the seller and losing the home for good.


But, if you don’t know the fair market value of the home you could overpay by thousands of dollars. To zero in on the market value of the home you’ve chosen, you should know if you’re in a seller’s or buyer’s market.


A buyer’s market means that there are plenty of homes for sale, but a shortage of buyers. This gives you more power to bid lower than the asking price and to even ask the seller to pay for some or all of the closing costs. In a buyer’s market, you’ll find the seller more willing to negotiate.


If you’re in a seller’s market, there is a shortage of homes for sale and you’re likely to have several potential buyers making offers at the same time. A seller’s market is a little tougher to negotiate in because you may need to compete with other buyers.


It’s sometimes devastating to a potential home buyer when their good-faith offer is rejected – especially without a counter offer. This could happen when the seller receives many offers and your offer was much less than the others. Or, the seller may back off of your offer to see if he can eventually get a better one.


All may not be lost, even if your offer has been rejected by the seller. The seller may not have accepted any offer on the home and you may still have time to negotiate by moving rapidly with a higher offer. This may result in a bidding war that your real estate agent will need to help you with.


A buyer’s agent is extremely helpful if you’re a first-time home buyer. He or she will be familiar with the local market and be able to negotiate the best deal on your behalf. You’ll learn a lot during this process, which may be helpful to you when you decide to sell.


If you’re working in a seller’s market and there’s a real shortage of homes in the area, you may still be able to get your dream home. Find a home you really love in an area you’re interested in and write a letter to the homeowner.


It’s a true leap of faith to try this method, but it’s worked for thousands of buyers and it just might work for you. Even if you receive a “not interested” reply, at least you’ll know you tried.


Never rush to make an offer in any market until you’re sure the home is right for you. Unless you do the proper research on the home, you may be rushing in to a situation that you’ll later regret.


Whether you live in Brandon MB, Virden MB or you're searching for acreages in these surrounding areas, the search can be strenuous and time consuming.  You can call on me to be your trusted go to REALTOR®, with insight on all new listings and recent home sales, within our local real estate market.

Negotiating Tips When Buying Your Next Home


When you are buying a house, one of the primary considerations, without a doubt, is the cost of the home. You want to make sure that you are getting the best price possible for the property you wish to purchase.


To do so, you need to have sufficient knowledge of real estate. Of course, it would be a great help if you have a reliable real estate agent on your team who can provide you with all the information you need and guide you on the proper approach to negotiating a house’s price. But these tips should give you some idea on how you can better get a better deal with the seller:

Study the Market

It’s a good idea to familiarize yourself with the type of marketing you’re entering as a buyer even before you start searching for your dream home. Know that when you are negotiating the price of a property in a buyer’s market, there will be more homes for sale than buyers, so you’ll have the upper hand here. You can take advantage and offer a price that you’re willing to pay and even ask the seller to cover closing costs or other requests you might have.

 

On the other hand, if you are navigating a seller’s market, it will be harder for you to negotiate the price, if possible, at all. Because the number of buyers is higher than the properties up for sale, you will probably have to agree to the seller’s price and conditions.

 

You’ll know the kind of real estate market you are in from your trusted agent and by checking with the Canadian Real Estate Association.

Know as Much as You Can About the Property and the Seller

It will benefit you to know more not only about the property you’re trying to buy but also the seller you’re going to communicate with. For instance, knowing that the seller has been trying to sell their home for months or even years means it’s likely that they’re eager to sell, and you may be able to negotiate the price.

 

Other information you should find out includes whether the property has been sold before and for how much it was sold, why the seller is moving, and more.

Don’t Just Negotiate the Price

If you are a first-time homebuyer, you might think that the only thing you can negotiate with the seller is the price. Still, there are other things you might want to work out with the seller, like the appliances to be included in the sale, repairs, closing costs, and more.

Appeal to the Owner’s Sentimentality

Homeownership can be sentimental. The seller probably has some unforgettable memories in that house. Why not let them know why you want the house, why it matters to you, what future you imagine having in that house with your family? Perhaps if the seller sees that you will take care of the home the way they did, they’ll be more open to negotiations.

Conclusion

Negotiating is part of the buying process. Your seller expects that, so don’t hesitate to do it, but you have to be prepared to compromise as well. Know that it is unlikely that you’ll get all the things that you are asking for and be okay with that. Gauge the market because if it’s a competitive one, there’s a possibility that the seller will just give the property to another buyer – one who’s not haggling too much. You should also listen to your real estate agent and know that you have a pro on your team who has your best interest in mind.

 

If you are looking for a home in Manitoba and want the best real estate agent to be on your team to help you through the entire process, including the negotiations, Chris Low is the agent you are looking for. Feel free to reach out for inquiries about anything real-estate-related!

Comments:
No comments

Post Your Comment:

The trademarks REALTOR®, REALTORS®, and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are member’s of CREA. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by CREA and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.