So here’s a question: when you want to buy something, do you:
Settle for the price with no questions asked?
Cave in when you ask for a deal and it is rejected?
Stubbornly hold on to every last cent so you can say you won?
If you see yourself in one of these categories, you might want to read some tips on how to negotiate a deal in the hot SoCal real estate market. Right now it is definitely a seller’s market, but you don’t have to be taken to the cleaners. You have to work smart, knowing when to start negotiating, and more importantly, when to stop.
Right now there is a shortage of inventory in the Orange County area, so that means you need to get your financial house in order, and know what you can and want to pay for a property in order to move quickly on it. For example, a home in Orange County that is under, say $750K may be off the market within a day or two.
So do you need a real estate agent? Think about this. Your home will likely be the most expensive purchase you will ever make. You only make that decision a few times in your life. Why would you think you should do it alone, rather than get the advice of a professional who works with buyers and sellers every day? At The Kovacs Connection, we have a team of experienced agents with an in-depth knowledge of the market, and we have negotiated many, many deals, and know what it takes to get you from “I want it!” to “Sold!”
Some home buying tips to consider with your agent:
Do the Math
Figure out how much house you can afford. That means getting your mortgage value pre-approved. A pre-approved buyer is a lot more attractive to a seller because they realize there should be no glitches once both sides agree to a price.
Don’t Be a Donkey
You know who you are…people who will get hung up on a few thousand dollars. Interest rates are low, so a $5000 difference in price over the life of a mortgage can be peanuts when you and your agent pull out the calculator. If you won’t budge, you can lose the house in this market. If your Significant Other has his/her heart set on the house….hmm…might want to be a bit more flexible with your offer.
You need to put in an offer based on the value of the home. This is where an experienced real estate team is invaluable to you. They know the area, and the comparables, and what prices like-sized homes in that neighborhood are bringing. Say you see a home in a neighborhood you really like, and your realtor tells you it is below market value. Chances are high that the price won’t be going down.
Quick on the Draw
In a seller’s market, a low-ball offer can be rejected quickly. If you fall in love with a property, then give the seller a good, respectable offer. A good offer from a pre-qualified buyer can go a long way with a seller to give you the nod.
Ask Some Questions
Why is the seller moving? Maybe the seller has relocated with a new job out of state and wants to sell quickly at a decent price. Maybe the seller is going through a divorce and wants a quick sell to get legal matters tied up. Is the property in foreclosure? How long has it been on the market? Or maybe the seller doesn’t have another residence lined up, and is waiting for the right price for the property. Having this information from your realtor can assist you in tailoring your offer.
Let It Go, Let It Go
Nothing is perfect. You won’t find the perfect house in the perfect neighborhood at the perfect price at the perfect time. The wisdom is in knowing where you need to compromise. Is the house in a neighborhood you love, but is outdated? Ok, some sweat equity can fix outdated countertops, appliances and carpeting.
This will likely be the most important purchase of your life, so join with the professionals at The Kovacs Connection to get the house of your dreams at the best price!