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Home
Purchase Negotiation
Here are ten
important questions you should ask your Sales Associates and why you
should ask them. |
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Property
Specific
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1:
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How long has the
property been on the market?
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Why:
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The length of time
a property has been on the market may indicate the seller's
willingness to negotiate.
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2:
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Have there been any
price reductions during the listing period?
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Why:
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The amount of any
price reduction, as it relates to the overall purchase price, may
indicate the seller's desire to attract an offer.
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3:
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Have there been any
other offers to the property?
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Why:
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It will be helpful
to know what offers may have been turned down and for what reason.
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4:
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What is the
motivation of the seller?
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Why:
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Motivation is a key
element in any negotiation. As an example, if the seller has
already purchased a new properly, your ability to close quickly may
be an attractive element of the negotiations.
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5:
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What personal items are included in the sale?
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Why:
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Anything the seller is willing to leave behind
that you won't need to buy when you move in has real value.
Consider those items in your offer.
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Neighborhood Specific
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6:
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What is the price
range of the sold properties in the area?
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Why:
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This information is
important since it will indicate the top and bottom of that specific
market.
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7:
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What is the average time on
market for properties in this area?
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Why:
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Short
market times may indicate a seller's market. If this is the
case, you may face competition from other buyers.
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8:
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What is the list to
sale price ratio in this area?
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Why:
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This
approach to establish value works best in a P.U.D. and/or where
there are similar homes lot sizes and improvements.
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9:
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What is the average
sales price per square of recent solds?
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Why:
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This
approach to establish value works best in a P.U.D. and/or where
there are similar homes lot sizes and improvements.
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10:
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What other known
factors about the property or neighborhood could affect value?
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Why:
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Review
the Seller's Disclosure Statement very carefully with your Sales
Associate.
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Final
Recommendation
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If you will be financing the
property, get pre-approved for a mortgage prior to marking your
offer. This will show the seller your commitment and ability
to perform. Pre-approval can be extremely important in a
seller's market.
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