Housing Negotiations – 6 Mistakes That Can Make You Lose a Winning Deal

Housing Negotiations – 6 Mistakes That Can Make You Lose a Winning Deal

Have you been searching for your dream house for long? Did you find one but the negotiations did not go your way? Your house search is contingent on negotiations… it can either make or break the deal. Of course, your real estate agent will be by your side guiding you throughout the process but at the end, you have to take the final decision.

Often people let go of a great deal on a home for sale in Farmington Hills, Michigan thinking that the price is too high. Until you have looked at the comps and have had a house inspection, do not make any rash decisions. Yes, the negotiating phase is nail-biting because you never know what kind of counteroffer the seller will come up with but you have to keep an open mind, so that the opportunity in front of you does not slip through your hands.

Following are six mistakes that you should know before approaching a seller:

Mistake #1

Price Is the Only Thing You Should Focus On

So, you finally found a house that is $10k below your budget. While the price of the house is low but you are forgetting to factor in the cost of repairs and maintenance. Then there’s the landscaping, repainting and most important of all, the roof. Add all these costs to your monthly mortgage payments and the number will reach an astronomical level.

Don’t just look at the sticker price! You might get lucky if the seller is in a hurry to sell the house, which means an even lower price but still, make sure that you look at every feature of the house.

Mistake #2

Unwilling To Negotiate on Small Repairs

Say the house has a deck and some of the floorboards are rotten. Instead of focusing on the plus point that it has a “deck”, getting stuck on its repair is not a good argument. You are saving thousands of dollars on the house and the repair will cost you top $100. So, keep an open mind when it comes to small repairs.

Mistake #3

Waving Formalities in Negotiations 

The home for sale in Farmington Hills, Michigan you just visited is the “one” you have been looking for. Fearing that another buyer might place an offer anytime now, you waive few of the formalities such as a house inspection. Bad move! You don’t know if the basement has termites or the plumbing is faulty. Such repairs can cost you thousands of dollars, which will blow out your budget and your savings account.

Mistake #4

Getting Stuck on Your Offer Price

Say the house costs $200,000 and you come up with a counteroffer of $198,000. The seller doesn’t like your offer and won’t budge from his asking price. Are you going to walk away from the deal? You shouldn’t. Say if you have paid 20% down payment and are on a 4% interest rate loan, then the monthly payments will rise by just $8. In the bigger picture, it’s a small amount.

Mistake #5

Backing Out of the Deal after the Inspection Revealed a Few Repairs

Are the repairs so big that you feel they will cause a problem in the future? If not, then sit down with the seller and have chat on how to deal with the repairs and negotiations.

Mistake #6

Offering a Low Ball Offer

A low ball offer usually feels like an insult to the seller. So, do your homework and ask your real estate agent for comps. Only then come with a price for the negotiations.

Remember, when the time comes to make an offer, look past the small stuff and focus on what matters such as the foundation of the house. If you want to buy a home for sale in Farmington Hills, Michigan that falls under your budget, then visit Homes2MoveYou. Get in touch with me directly at 248-790-5594

Typical Seller Mistakes Listing Farmington Hills Properties

Typical Seller Mistakes Listing Farmington Hills Properties

Seller behavior may affect the marketability of a listing. Some typical seller mistakes listing Farmington Hills properties are more critical than others. Sellers should know the impact of their own behaviour and avoid the errors below.
Typical Seller Mistakes Listing Farmington Hills Properties

Typical Seller Mistakes Listing Farmington Hills Properties

Failing to Clean Up

It can be tedious to keep a property presentable for every showing especially when you are still occupying it. Sellers must spend time cleaning prior to property viewings and open houses. Buyers will notice the mess instead of the amenities of a property, so neglecting to clean up will make your home less marketable. Furthermore, buyers assume that sellers who do not clean their property also avoid serious home maintenance. Cleaning up helps listings sell faster and for a higher price.

Inconvenient Showing Instructions

Requiring too much notice or limiting appointment times can be a bad decision. Another mistake is not making it easy to get keys for a property through a lock box. When competition is heavy, people will focus on easy showings. Complicated showing instructions result in decreased opportunities and extended listing time frames.

Being Present During Viewings

Home owners may wish to be present during appointments, but this can do more harm than good. Buyers can feel uncomfortable looking through a house under the close watch of a seller. Additionally, excessive conversation with a property owner may distract a buyer from the property itself. Buyers prefer to take time to explore a home and to talk freely with one another about their thoughts. Also, sellers and buyers talking with one another could result in misconceptions about motivation and terms.

Pricing Too High

Price affects marketing time and what it may ultimately sell for. Of the typical seller mistakes listing Farmington Hills properties, this one is most critical. It is understandable for homeowners to have an attachment to a home and to try and get the best price possible. However, overpricing is dangerous. Overpriced real estate take more time to sell than correctly priced ones. As time passes, the listing grows old and is less intriguing to buyers. Long marketing time and price reductions over time will lead the listing to sell for less. For this reason, there is really no benefit to overpricing homes. Consult with a real estate broker for an estimated market price and delay listing your home if the market value is not enough.

For Sale By Owner

Some owners attempt to sell on their own. Even though it can be done, there may be many headaches and costly mistakes along the way. Real estate agents are trained on positioning a property, being an intermediary, negotiating contracts, and protecting the interests of sellers. They also understand changes in the market. Experience will make a big difference, particularly during changing real estate markets.

Sellers Are the Key

Sellers play an important role in the marketing of real estate. The typical seller mistakes listing Farmington Hills properties above are merely the most critical mistakes. An experienced listing agent can prevent other marketing pitfalls. For additional information on this and other similar topics, contact Tom Gilliam at 248-790-5594 or [email protected]

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