Remember these tips during the deal-making process of your home purchase.
QUICK ON THE UPTAKE
It is critical to respond to counteroffers as soon as possible and to avoid making a counteroffer with any term that is not truly a deal breaker. Delays in responding leave space open for another buyer to step in and create a bidding war, or even more likely, for the seller to perceive that other serious buyers might be out there. A seller's mere perception of a hint of a whiff of the scent of a potential bidding war is a homebuyer's number one nemesis, ratcheting up the possible sales price in the seller's head on an exponential basis.
It is critical to respond to counteroffers as soon as possible and to avoid making a counteroffer with any term that is not truly a deal breaker. Delays in responding leave space open for another buyer to step in and create a bidding war, or even more likely, for the seller to perceive that other serious buyers might be out there. A seller's mere perception of a hint of a whiff of the scent of a potential bidding war is a homebuyer's number one nemesis, ratcheting up the possible sales price in the seller's head on an exponential basis.
#2: CUT IN THE MIDDLE (WO)MAN
When you want to ask or tell the seller something, always always always go through your real estate agent, who will communicate your request or concern to the seller's agent. I know it seems inefficient, but it is truly a rookie move to contact the seller directly. It's just not done, mostly because the terminology is tough to master and legally sensitive. Also, some seemingly innocent and minor changes to your agreement with the seller might create problems with your lender; your real estate agent is better equipped than you to see these red flags. You hired your agent, so use him/her! It will prevent the catastrophic misunderstandings (read: drama) that can result when you or the seller says something even slightly different than what you each actually mean!
When you want to ask or tell the seller something, always always always go through your real estate agent, who will communicate your request or concern to the seller's agent. I know it seems inefficient, but it is truly a rookie move to contact the seller directly. It's just not done, mostly because the terminology is tough to master and legally sensitive. Also, some seemingly innocent and minor changes to your agreement with the seller might create problems with your lender; your real estate agent is better equipped than you to see these red flags. You hired your agent, so use him/her! It will prevent the catastrophic misunderstandings (read: drama) that can result when you or the seller says something even slightly different than what you each actually mean!
#3: GAUGE THE SITUATION WHEN DEALING WITH A DEVELOPER/BUILDER
A lot of this talk about negotiating and price and terms, etc. may be moot when you're buying a newly built home. By and large, the builder/developer dictates the terms on which they will sell you a home in their community, and you either take it or leave it. The list price is the price you pay, though in many markets, developers and builders are willing to negotiate if they have a large amount of inventory.
The builder will have a standard contract with a standard required deposit, standard contingency removal or objection periods, and a standard set of disclosures that they make to every buyer. The larger the builder, the more set they will be in their ways and to their price. That said, it doesn't hurt to ask for concessions or upgrades. Furthermore, builders hate getting sued, so they generally try to create a standard contract that affords you most or all of the same protections your real estate agent would build into a contract for you.
A lot of this talk about negotiating and price and terms, etc. may be moot when you're buying a newly built home. By and large, the builder/developer dictates the terms on which they will sell you a home in their community, and you either take it or leave it. The list price is the price you pay, though in many markets, developers and builders are willing to negotiate if they have a large amount of inventory.
The builder will have a standard contract with a standard required deposit, standard contingency removal or objection periods, and a standard set of disclosures that they make to every buyer. The larger the builder, the more set they will be in their ways and to their price. That said, it doesn't hurt to ask for concessions or upgrades. Furthermore, builders hate getting sued, so they generally try to create a standard contract that affords you most or all of the same protections your real estate agent would build into a contract for you.
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Neal Paskvan is a full time Realtor specializing in Downers grove, Darien,Woodridge, Westmont and Du page county Real Estate
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