If you're like most homebuyers, you have two primary considerations in mind when you start looking for a home. First, you want to find the home that perfectly meets your needs and desires, and secondly, you want to purchase this home for the lowest possible price.
When you analyze those successful home buyers who have been able to purchase the home they want for thousands of dollars below a seller's asking price, some common denominators emerge. While the negotiating skills of your agent are important, there are three additional key factors that must come into play long before you ever submit an offer.
This topic has been the subject of extensive analysis by Industry Experts, and a summary of their findings, and a specific step-by-step purchase plan for homebuyers, can be found in a new special report called "Homebuyers: How to Save Thousands of Dollars When You Buy".
This free report outlines the psychology of how a seller sets their asking price, and gives you 3 simple steps to follow, before you even set foot in a seller's home, which could help you to successfully slash thousands of dollars off the price of the home you want.
1. Clearly Overpriced: Every seller wants to realize the most amount of money they can for their home, and real estate agents know this. If more than one agent is competing for your listing, an easy way to win the battle is to overinflate the value of your home. This is done far too often, with many homes that are priced 10-20% over their true market value. This is not in your best interest, because in most cases the market won’t be fooled. As a result, your home could languish on the market for months, leaving you with a couple of important drawbacks: • your home is likely to be labeled as a “troubled” house by other agents, leading to a lower than fair market price when an offer is finally made • you have been greatly inconvenienced with having to constantly have your home in “showing” condition… for nothing. These homes often expire off the market, forcing you to go through the listing process all over again.
2. Somewhat Overpriced: About 3/4 of the homes on the market are 5-10% overpriced. These homes will also sit on the market longer than they should. There is usually one of two factors at play here: either you believe in your heart that your home is really worth this much despite what the market has indicated (afterall, there’s a lot of emotion caught up in this issue), OR you’ve left some room for negotiating. Either way, this strategy will cost you both in terms of time on the market and ultimate price received