When it comes to buying a home in Albuquerque, the dream scenario is to have your offer accepted without the need for negotiation. This is a possibility, as many sellers do accept the best offer they receive, for a variety of reasons. With the offer settled, you can then focus on other important aspects of home-ownership, such as deciding on the perfect couch or learning the history behind wainscoting.
When making an offer on a property, it is important to keep in mind that sellers may reject offers for various reasons. In some cases, they may even make counteroffers. This is particularly common when bidding low or when there are multiple competing offers. It is important to be aware of these possibilities and to approach the negotiation process with a clear understanding of the potential outcomes.
Here are a few rules every buyer should know before they — and their agent — start negotiating:
Act Fast
It’s important to respond promptly to a counteroffer, ideally within 24 hours. Waiting too long could allow another buyer to take the property. Additionally, if the seller senses hesitation, they may withdraw their counteroffer before you have a chance to respond.
Raise Your Price (Within Reason)
It’s important to avoid overpaying for a house, but sometimes increasing your offer may be necessary, especially if your initial bid was low. Consult with your agent to determine the appropriate amount to add to your offer. Before making an offer, discuss with your agent how much you’re willing to increase your bid if the seller doesn’t accept it.
You agent has the ability to persuade the seller by presenting comparable homes in the area that have recently sold for a similar price and have similar features and square footage. This will make the counteroffer more appealing to the seller.
As your agent negotiates, it can feel like things are escalating quickly. It’s stressful. You may feel a sudden urge to do whatever it takes to win.
Before you go overboard, there are two things you must keep in mind:
- You can’t exceed the monetary confines of the pre-approved mortgage you received from your lender.
- You shouldn’t overextend your budget.
Because your counteroffer has to be an amount you’re comfortable spending on a home. You want that new house and to keep living your life. Plus: You’re not out of options yet.
Increase Your Earnest Money Deposit
Increasing your earnest money deposit (EMD) is a way to show the seller that you are serious about buying the house. The standard EMD is usually 1% to 3% of the sales price of the home. However, making a counteroffer with a 3% to 4% deposit can be a persuasive factor for the seller to side with you.
Be Patient
When negotiating the purchase of a property, consider changing your proposed possession date to accommodate the seller’s timetable. Offering a later possession date or a “rent-back” agreement, where the seller pays rent to stay in the home for a set period of time after closing, can be effective in buttering them up.
HOT ALBUQUERQUE LISTING OF THE WEEK
1231 San Gabriel Street, Bernalillo, NM 87004
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