Buying a home in Berks County can have emotional moments. Yet when it comes to negotiating a price for the home, you want to keep emotions at a minimum.
This is where your agents comes in to guide you through this process. Your agent will give you advice, but in the end, you're the one who makes the final decision.
Here are six tips for negotiating the best price on a home for sale in Berks County.
Get Prequalified for a Mortgage
More and more, this is a step that can't be overlooked. Sellers these days expect that a serious buyer will already be qualified for a mortgage and know how much they want to spend on a home. This also puts you ahead of those buyers who may not be prequalified.
This is one of the most important purchases in your life, so ask all the questions you want. Even if the questions may otherwise seem too personal, as long as they relate to the sale, ask them. What's the seller's motivation for selling? What is their financial position? Are they facing foreclosure or a short sale? Have they already purchased a home or relocated, which may make them eager to accept a lower price to avoid paying two mortgages? Has the home been on the market for a long time, or was it just listed? Have there been other offers? If so, why did they fall through? The more signs that sellers are eager to sell, the lower your offer can reasonably go.
Work Back From a Final Price to Determine Your Initial Offer
Decide in advance what the highest you're willing to pay for a home, then work back from that amount to make your initial offer. Just remember that if you bid too low, you may offend the seller. If you bid too high, you may end up spending more than you need to.
You agent can work with you to compare homes in area that have sold recently to come to a fair initial offer.
Sellers don't like taking chances. Nobody does for that matter. So keep the bid free of complicated contingencies, such as making the purchase conditional on the sale of your current home. Try to keep contingencies for mortgage approval, home inspection, and environmental checks typical in your area, like radon.
Remember that buying a home is a business deal. Treat it that way. Consider any movement by the sellers, however slight, a sign of interest, and keep negotiating.
Each time you make a concession, ask for one in return. If the sellers ask you to boost your price, ask them to contribute to closing costs or pay for a home warranty. If sellers won’t budge, make it clear you’re willing to walk away; they may get nervous and accept your offer.
Don't Let Competition Change Your Plan
Great homes and those competitively priced can draw multiple offers in any market. Don’t let competition propel you to go beyond your predetermined price or agree to concessions — such as waiving an inspection — that aren’t in your best interest.
We can help you negotiate your next home purchase in Reading and the surrounding communities of Blandon, Boyertown, Douglassville, Exeter Township, Fleetwood, Kutztown, and Oley. Find your next dream home with our powerful property search tool. And make sure to come back to our blog every week for more real estate tips and local Berks County articles.