Homeowner Goals vs. Homebuyer Goals
When a homeowner considers selling a home, their goal is often to maximize their homes selling price and reduce the costs of selling a home, while a home buyer’s goals are quite the opposite – they are looking to minimize the price they pay. There are many factors that go into the ultimate sales price of residential real estate, and a sales price that was initially agreed upon is sometimes renegotiated and revised. Signing a contract is not usually the termination point for many sale price negotiations. Here are some of the tools that a homebuyer can use to lower the
ultimate price they pay for a home after they sign a contract and agree to a price.
Leveraging Your Home Inspection
A home inspection may identify problems with a home that were not immediately obvious to the homebuyer when the price was first agreed upon. A homebuyer can use this home inspection as a tool for lowering the price of the home, and hiring a quality experienced home inspector can often help to identify significant problems associated with buying a home.
Some common problems that may be identified by a home inspector include the presence of pests like termites (or prior damage from termites), flooding and mold damage, problems with HVAC systems, or roofing problems. Every home is likely to have one problem or another and a good home inspector can identify many problems within a home, particularly if it is an older home.
A home buyer can present this home inspection report to a home seller after the initial price of the home is negotiated and request that the home seller repair certain aspects of the problems identified or provide for a price concession on the home. The solution will often be a matter of negotiation, but many home sellers will make some pricing concessions in order to not lose the deal that they have in place.
Use Mortgage Approval as a Negotiation Tool
A homebuyer can use the mortgage approval process as a negotiation tool for negotiating down the price that they pay for a home. A home lender will have a home appraised by a third-party appraisal firm and will often make a decision to lend to a potential home buyer based on the assessed value of the home. A home that comes in with a lower appraised value than expected may turn into a negotiation tool for a home buyer. They can utilize this low appraised price as a way of identifying that they were unable to get a mortgage loan for the previously agreed upon price and will need to cancel the agreement without renegotiation of the pricing terms.
Since this appraisal can come at a point of time significantly after the contract was agreed on, a home seller may not want to put their home back on the market after they had a signed agreement in hand and may settle for a lower overall price as a result.
Use the Home Sellers Inflexibility to Your Advantage
A home seller may find themselves limited in terms of a move out date due to their inability to purchase a home and may request that there is a shift in the move-in date accordingly. If a homebuyer is flexible they can ask for a price concession in order to shift the scheduled moving date, particularly if there is a predefined move date in a signed contract. Remember that these aspects are often negotiable, and many home sellers may value the added flexibility achieved and may be willing to make a small price concession to achieve this.
It can be expensive to buy a home, and finding ways to lower the ultimate cost of a home purchase can be achieved, even after there is an agreed upon price. Use a home appraisal and inspection as tools to obtain some price reductions and remain flexible at all times. If the home is selling for a reasonable price then it may not be in the best interest to negotiate in a tough manner; but if not, there are many reductions available for a homebuyer even after a price is agreed upon.
For more information about getting the best price on a home possible, contact your local neighborhood Realtor. Did you know in most cases it’s free to have your own agent? Save money using these, and other cost-saving tips from your local trusted Realtor today.