Buyer Negotiations

Everyone wants to get a great deal on a home. And as a Buyer's Agent, we want the best deal for you. That means the right combination of price and concessions so that you're buying your dream home for - ideally - less than market price.

But in a market where near-perfect information exists (that means a seller know just-about-everything they need to know that will help them set their asking price accurately, and every buyer knows just-about-everything they need to know so that they can pay pretty-close to exactly what a home is worth, and not a penny more), then it's very hard to get a "good deal" on a home. Good deal - by this definition - means a below market price.

You may get a few thousand off here or there, but barring anything outside market norms, you should expect to pay - market price.

There are a few exceptions to this rule that will help you to get a better-than-market price. We will mention a few of them here:

1. The seller is in a hurry to sell and will sell for less than market price to get a good sale price.

You can benefit from an extra-market force like a personal matter in the life of the seller to get a good deal on a home. But be careful - this often comes at the cost of an emotionally-charged transaction that can result in transaction volatility.

2. Market supply for similar homes is high, and demand is not keeping pace.

Picture a scenario where you are bidding condo in a community of near-identical condos, and many are for sale. This will result in some of the sellers being willing to sell below market price to attract a qualified buyer.

3. The condition of the home is such that the seller needs to sell the property for a below-market price in order to compensate for the required-repairs.

Be aware that you have to be able to make the repairs for less than what the repairs typically cost the market to make in order to benefit from a total below-market price, in this situation.

It's wonderful when you can pay less than market price for a home. But outsized gains are typically caused by inefficient markets and the more technology that moves into our real estate marketplaces, the more efficient our markets become. 

Increasingly, we should be prepared to pay market price for a home and to pin our deal-satisfaction to something other than getting a relatively-low asking price. After all, getting the home of your dreams is a pretty great accomplishment too!

Contact your HomeProp Agent and let them help you identify opportunities for great deals on real estate.