The dance begins: Negotiation to buy a home

Provided by Coldwell Banker®

You've found the home of your dreams. So how do you snatch it for the price you're willing to pay? Making an offer is an art.

You could offend a seller with an unreasonably low price or reference out-of-date market information, says Bob Irwin, author of the book "Tips and Traps When Negotiating Real Estate."

Of course there is no one, surefire tactic, but here are some common tips for gaining the upper hand:

Learn about the seller's situation.
Having a clear understanding of the seller's big picture will help you determine how badly or quickly he or she needs to sell the home. That may indicate how much room exists to adjust your bid price, says Julie Reynolds, spokeswoman for Realtor.com.

Does the seller have a contingent offer on another home that depends on this deal? Are they selling to relocate for a job? Are they trying to avoid foreclosure? Is the family emotionally attached to the house?

A seller who owns the house without a mortgage may be able to accept a slightly lower price than an owner who has to pay off a hefty loan upon a sale.

Research nearby sales prices.
It's important to do your homework to find out how much comparable houses in the area are selling for and how many days they're on the market. The more recent the sale, the better the benchmark. There are a variety of websites that offer this information, including realtor.com, zillow.com, and trulia.com.

Survey the house.
Sure, it may look like the home you've always imagined you would grow old in, but be on the lookout for red flags that can lead to big problems down the road, such as black mold, cracked foundations or roof decay. You can ask the seller to price the cost of the repairs into the deal.

"At the end of the day, the house may not be worth it when you realize its true condition," Irwin said. "Know what you're buying."

Don't low-ball.
Don't insult the seller with a price that is far too low, especially if the house has just been listed for sale. You don't want to short-circuit negotiations from the get-go. Be realistic and offer a price below what they're asking but above what they would balk at.

Don't be desperate.
No matter how small the selection, you shouldn't decide that a particular house is the only one for you. By remaining detached you will be less likely to pay top dollar and will be in a better negotiating position.

Get pre-qualified.
Know what you can afford, and remember that you may have to put down a large percentage of the purchase price. A preapproval letter from a lender shows you are serious and able to come through on the deal.

Negotiate closing and escrow costs.
Closing costs include things like city and county property taxes, attorney fees, title and insurance. This is an area open to negotiation that can save you a lot of money, but can also feel like an endgame in chess. If the seller doesn't have an obligation to pay off their mortgage once the deal closes, they may be more likely to budge on this.

Request contingencies.
Ask for a reasonable period of time for a home inspection and title approval, as well as geological and pest reports. You may be able to use information from those reports to justify a lower price.
Meanwhile, find out if you are allowed a loan contingency in the contract that will protect you until the deal is closed.

"Buyers are often going into negotiations assuming that they'll be able to renegotiate based on what inspections will show," Irwin said. "It's a buying strategy that many people use, and the seller may even expect that."

Strike while the iron's hot.
Real estate is often highly competitive. Act quickly if the deal is good, or else someone else will. Visit many homes so that you'll recognize what you want when you see it. Even in a slow market, it's a bad idea to procrastinate.

Consider a fixer-upper.
If you find you're priced out of the market, you may be able to find a home in a good neighborhood that's in poor condition. If you're willing to put the sweat and a little more money into it, it could be worth your while.

Sea Coast Agent & Buyers Featured in USA TODAY

Today Jessica Riffle Edwards of Coldwell Banker Sea Coast Realty is featured in a USA TODAY article that asks, "Will tax credit help first-time buyers ignite home sales?"

Her client, Michael Jennings, says the April 30 deadline for the $8,000 homebuyer tax credit was a factor in his decision to buy a home after 3 months of house hunting.

"The tax credit was a big factor. I wouldn't have moved as quickly as I did," Jennings says. "You really hate to miss out on that chunk of change...”

Home buyers have only two weeks left to take advantage of the home buyer tax credit. The program offers up to $8,000 tax credit to first time home buyers and $6,500 to buyers that have owned their current home for five of the last eight years.

To learn more about the tax credit program, please visit www.seacoastrealty.com/8000now.

Staging a Home for First-Time Homebuyers

When it comes to staging a home for sale, it is important that sellers create a warm and inviting atmosphere that will appeal to as many potential buyers as possible.

Today, due to an abundance of low-priced homes to choose from, historically low interest rates and an $8,000 federal tax credit incentive, first-time homebuyers account for a greater number of these potential buyers than ever before.

However, sellers looking to attract this coveted demographic need not do a complete design overhaul. Staging a home for first-time homebuyers is easier than one might think.

Below are seven simple staging tips from Coldwell Banker Sea Coast Realty to help boost a home’s appeal and give owners the competitive edge necessary when selling a home.

Stage rooms with one purpose.
Extra rooms that have a mishmash of uses can confuse and even deter first-time homebuyers, so staging rooms with one purpose is vital. Keep in mind that these buyers are generally young couples without children, and rooms should be presented as areas equipped to meet their needs. So turn those playrooms and storage dens into a home office or the kids’ bedroom into a guest bedroom.

Tackle the easy “do-it-yourself” projects.
In a recent Coldwell Banker survey, 81 percent of brokers said today's first-time home buyers consider move-in conditions to be very important when searching for homes. To ensure that a home is in tip top shape make sure to replace outdated kitchen and bathroom fixtures, apply a fresh coat of paint to a worn wall and refinish the kitchen cabinets. Providing a sleek and modern look wherever possible can make a huge difference in the eyes of first-time homebuyers. To learn more about what home styles are “in fashion,” ask a local Coldwell Banker agent about the styles seen in homes that are selling in the area, and purchase a current interior design magazine for ideas.

Focus on the living areas.
A living room is an area in which potential first-time buyers should be able to envision themselves entertaining friends or gathering with their family. With that in mind, homeowners should make the area appear as large and functional as possible by removing any unnecessary furniture and decorations.

Make sure the master bedroom appeals to both sexes.
The master bedroom of a couple’s first home is often the first bedroom they will share. When staging this room, make sure that it appeals to buyers of both sexes. Remove any feature that seems too gender-specific and paint the walls a neutral color.

Clear the room of family portraits.
First-time homebuyers are looking for a home they can picture their family living in, not the previous owner’s. Coldwell Banker Sea Coast Realty recommends taking down family portraits, personal collections and knickknacks. Removing these items will also eliminate clutter and ensure that people are looking at the house for sale, not at the photos from the last family vacation.

Furnish the home, but don't overdo it.
While an empty home looks spacious, it is hard for new buyers to visualize their belongings in a home if they are staring at ceilings, floors and bare walls. Leave the basic components of each room, but make sure there is still plenty of open space.

Don’t forget to spruce up the yard.
First impressions often play a role in a consumer’s decision making process. In fact, 21 percent of participants in a recent Coldwell Banker survey knew their home was the one for them before even walking inside. Make sure the home’s exterior is inviting by trimming the bushes, mowing the lawn and painting faded window trim. Couples looking for their first home often have less yard work under their belts and will appreciate the seller’s attention to detail.

For more information, please visit www.SeaCoastRealty.com or find us on Facebook.