Negotiate Your Home Price

I have been licensed now for 14 years and I have seen things that would blow the average person’s mind! I wish I would have kept a journal about all my adventures as a Realtor in the city of Las Vegas. One day maybe I will write a book??

Let me get back on track… One of the strangest phenomenons I have encountered as a Realtor is a buyers focus on “LIST PRICE” and how the list price controls them… What do I mean by this? Most buyers just think the list price is a fixed number that cannot be changed OR some think its “RUDE” to offer less… They will literally tell me they love the home but the list price is just way to high “We will entertain an offer once the seller lowers the price” or “Let’s just keep an eye on this one.”

NO NO NO people… There is no time to be waiting or coming back! That home will be gone and probably for a LOWER PRICE!! Not always but you have to at least try to make an offer!! I am here to tell everyone the list price is NOT SET IN STONE and can be changed to a lower number OR higher… Higher?? Why would anyone go higher you may ask?

Well… If the home will appraise for a higher amount than you can raise the price of the home in your offer and ask that the seller pay that difference back to you in the form of a seller contribution to the buyers closing costs… In other words we are asking the seller to pay $$ towards your closing costs at closing… But this would NOT work if the home is already listed to high… You have to pay attention to the VALUE NOT THE LIST PRICE…

 

I myself really do not pay much attention to “LIST PRICE” when I am out showing property… What I care about is what the home will appraise for and work off of that… If a home is listed at $350,000 and the comps support a $320,000 value (I will explain what a comp is right after this,) then unless you have $30k to throw at the deal out of your own pocket the list price is meaningless to you as the buyer. We would offer $320k or maybe $325k in hopes we can make the seller see the light… That would be a deal that would have a chance at appraising and in turn actually closing.

Most deals that fall out of escrow are one of three things… Inspection issues with the home, Financing complications OR Appraisal issues… ALWAYS be concerned with what the value of the home is rather than the list price!!

Make sure your agent has a list of comps with him whenever you are considering what to offer. Comps are sold/closed properties that are comparable to the home your looking at in the same neighborhood OR within one mile radius… Always better to use comps from the same subdivision. Once your agent can determine value you can decide on a proper offering price. Just remember you will lose both time and money if you get into escrow on a home that does not appraise.

If the seller does not agree to come down on price and you are not able (or do not want to) come up with the difference than you will be out not only the cost of the appraisal but by the time the appraisal comes back you would have already paid for a home inspection as well. $750-900 lost and non-recoverable… This is the exact type of situation where a Realtor can really make or break you! A Realtor can really put thousands of dollars in your pocket but just as easily cost you thousands!! And the scary part is a lot of buyers do not even know what is happening because as long as everything works out how would you know. You only find out when the deal falls apart… Pay attention to VALUE and NOT LIST PRICE…

147 thoughts on “Negotiate Your Home Price”

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