“Deal” is Largely a Matter of Perspective

When you’re ready to buy a home, you’re looking for a combination of factors. You want the right home, in the right neighborhood, with the right amenities for the right price. When you find that perfect home, you make an offer – and you’re on pins and needles wondering whether or not you’re going to get the deal. Keep in mind that “deal” is largely a matter of perspective, and you’ve mastered a key aspect of the home buying process.  

You’re buying a home.

This may sound obvious, but keep in mind that when you’re buying a home, you’re buying a home. It’s someplace you’re going to live for years; maybe as many as 30 years, or more. You’re working on a tight budget; you know how much you can afford, and what will stretch you to the breaking point. Maybe you’re planning a family, and trying to budget for that. All of these factors come into play when you’re making an offer for a home. You want to make a good deal, and so you offer less than the asking price.

The sellers are selling their home.

You’re trying to buy a home. Keep in mind that the sellers are selling a home. The sellers have an emotional investment in the property. They’ve lived there for years. They may have raised their children there. They’ve probably put money and sweat into the property; in keeping it up, and in adding their own personal touches.

Sellers typically feel that all of this is worth something, and if you make a low offer, sellers might not think of it as a ‘deal’ at all. Sellers want to get at least what their home is worth, and most of them want to turn a profit – but buyers want to make money. These disparate viewpoints are why it’s so hard to meet in the middle.

Negotiate with both parties in mind.

When you make an offer, you want to do what’s best for you – but if you keep the sellers’ viewpoint in mind, you’re more likely to make an offer that can be a starting point for a real negotiation. If you offer too low, the sellers might simply reject your offer out of hand. You should make an initial offer that gives you room to negotiate, but still respects the fact that the sellers are selling their home, and they feel that home has a certain value

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Steve SchraderBachar is a local mortgage planning expert who resides in Iowa and provides service to the clients of his mortgage planning practice across the Midwest.  You can reach Steve at 1-515-289-4381 or 515-360-5197.