You've found it: A large new home for your family. It's in the area of the city that you love, with the perfect architectural style and lots of room for entertaining guests. It would have been perfect for you, but there's only one problem - you're not quite ready to pay the price the seller is asking for. You'll have to put in an offer below the seller's asking price - a risky move.
Although you will be rolling the dice with an offer below asking price, there are ways that you can increase the likelihood that your offer will be successful. Before you submit your offer, use these three strategies to make it more appealing.
Work Out Other Terms In The Seller's Favor
If you're going to ask for a lower selling price, it helps to show that you're willing to compromise on other terms - that way, you come across as a reasonable human being and not a bargain hunter. By offering to give the seller the better deal on other terms, you're showing that you want to close a sale - and the seller will see you making an effort to come to an agreement and respond in kind.
There are several ways to do this. When you submit your offer, see if you can negotiate an arrangement that has you paying the closing costs or a closing date that works better for the seller. Or, offer to make the down payment in cash or give the seller a larger deposit.
Arm Yourself With Facts To Make Your Case
If the home you want to buy is priced well above fair market value, you can easily use that to your advantage and turn it into a benefit for the seller. First, you'll want to look up property values for similar homes in the area. You should also investigate how long it takes homes in that area to sell and the difference between the average asking and average selling price in the area.
If you can show the seller that their asking price is above their neighborhood's average sale price or that their home has been on the market longer than the average home (or both), then you can make a strong case for a lower offer.
Submitting an offer below asking price can work, but it's not something that should simply be done on a whim. It takes careful planning and a great strategy to actually win a bid if you're coming in below asking price. Contact you trusted real estate professional to learn more about how to submit a below-asking-price offer.