In Irvine and across the United States, real estate transactions are invariably subject to bargaining and negotiation. Sellers will rarely list their properties without expecting some level of negotiation. In fact, real estate agents craft their staging and listing strategies based on how much bargaining they think will take place before getting to the closing table. If you’re looking for houses or condos in Irvine for sale, here are five recommendations to follow when entering the negotiation phase of the home purchase process.
1. Hire the Right Professional
When Irvine real estate agents set out to purchase their own homes, they will ask a colleague to represent them 99 percent of the time, and they do this for the same reason attorneys never represent themselves in court: professional representation provides a reality check. It is too easy for homebuyers to overlook certain aspects of negotiation when they believe things are going their way. Real estate agents are likely to spot weaknesses in the bargaining process, and they can be more assertive when home inspections offer opportunities for negotiation.
2. Conduct Market Research
Local housing market conditions provide the basis of all real estate negotiations. The first aspect to determine is whether the market tilts toward buyers or sellers. When housing supply is abundant, negotiations will tend to favor buyers. On the other hand, trying to bargain in a sellers’ market could be an exercise in futility.
3. Be Prepared for Counteroffers
Homebuyers should always be prepared to receive a counterproposal to every offer they make. Even when market conditions favor buyers, sellers rarely accept the first offer they receive. Formulating the right response to the initial counteroffer is crucial. Through their experience, real estate agents coach buyers on the type of counteroffer they should expect so a good response can be crafted. The key to managing counteroffers is to not put all the cards on the table at once.
4. Evaluate the Seller
Research should not be limited to market conditions. Collecting information on the seller can help buyers understand the motivation and plans of sellers, which will ultimately influence the way they handle negotiations. The real estate agent may already know the seller, particularly if he or she is a flipper trying to take advantage of depressed housing markets. By doing a title and property records search, buyers may be able to determine if the seller has already purchased a home elsewhere and may now be in a hurry to sell to make his or her new mortgage payments.
5. Determine How Much You’re Able to Afford
Every offer presented must be realistic. First-time homebuyers may want to sit down with a mortgage loan officer and determine how much home they will be able to afford. This estimate should take into consideration household income minus all housing, mortgage, and consumer debt. The purchase price tolerance should be commensurate with this calculation.
From Orangetree to Cypress Village, Irvine homes for sale are in high demand. Connecting with a trusted local real estate agent gives you a significant advantage toward finding the perfect home. Contact OC Residential today at 714-454-6304 to schedule an appointment.