Real EstateReady to Make an Offer? Check Your Emotions at the Door

Seeing a real estate purchase move successfully to close, where all of the parties feel satisfied in the outcome, reflects what many refer to as “the art of the deal. ” Negotiating is a give and take proposition in real estate and, when you find a home that has a particular feature you desire, you may be able to give something to the seller in return for getting that home. This sets up a win-win scenario. Always be on the lookout for an opportunity to make everyone happy as that will make negotiations go much easier. For example, if the seller needs extra time to find another place to move before they can close on the house, then offering that extra time puts you in a better position to get the house. If the seller wants a little extra money on the offer price, but still agrees to pay your closing costs which may be helpful (since you don’t have much cash to put forward at closing) then that type of negotiating works out in everyone’s interest – here in Charleston SC, we refer to this as “Charleston charm, ” and it just makes seeing a win-win deal done all that much sweeter.

So when it’s time to make an offer, here are some other things to keep in mind.

PASS ON OVERPRICED HOMES

Take pricing out of the negotiation equation. If a home is priced properly then you, as a buyer, do not have to fight that battle. From the seller’s perspective sticking to their figure (even an overpriced one) is easy for them since they get to stay in the home if it does not sell. You as the buyer may not have that luxury if you are in between homes or moving to a new area. So the best bet is to avoid homes that are overpriced unless you absolutely love a particular home. Consult with your real estate agent as to the home’s pricing and whether it is realistic compared to other similar homes in the neighborhood. Homeowners sometimes overprice homes by adding “value” based on decor enhancements or an emotional attachment to it. No amount of negotiation will convince them the price is too high and will only leave you frustrated if you decide to pursue it.

If you absolutely must have that home then you may want to make an offer you and your agent consider reasonable. If the offer is rejected then taking a “wait and see ” approach might be the best course of action. Often overpriced homes will sit on the market with no offers after which dejected sellers may start making more drastic price cuts. If you are worried about that home slipping away during those price cuts, then have your real estate agent communicate to the seller’s agent that if any offers do come through to let you know as you may be willing to beat the offer price for the home.

Check Your Emotions At The Door

Buying a home is an emotional process and especially becomes more emotional once a buyer walks into the door of a new home and falls in love with it. There is nothing wrong with “loving” the way a house looks or the unique features it has. The problem with emotions is when it is time to negotiate over purchasing the home.

The current tight inventory in the Charleston real estate market means “keeping a cool head ” is more important than ever. You may be required to make a purchase decision quickly and could even find yourself in a multi-offer situation. In times like this, keep your emotions out of the home buying process and negotiate your home purchase keeping your budget in mind. 

Prioritize Your Wants In A Home

By prioritizing your wants in a home you come knowing what you “must have ” versus what would be “nice to have. ” Want a first floor bedroom for elderly parents who live with you? That is a “must have ” feature. In Charleston, buyers sometimes prioritize hurricane proof construction, not having a requirement for flood insurance, or deep water for their boat instead of tidal. By knowing what you really need, you can be better prepared to negotiate on the home that does have the features you need. 

Let a Professional Lead the way

Having a professional real estate agent represent you in the home buying process means you have expert advice on how to work your way through the negotiation process due to the agent’s years of experience. At times where emotions can get the best of you, having a professional in your corner lets you relax and know someone else has your best interests in mind and will guide you when you need it.

Note: From the first step of the home buying process, to helping you craft a list of “must-haves, ” and submitting an offer, Luxury Simplified Real Estate agents have the expertise and experience to guide and assist you throughout the process. A great first step is to have a look through our newly re-designed “Buying Charleston ” page which offers a comprehensive one-stop source for articles, buying guides, checklists.