| One of the most interesting phenomena I have | | | | months or ten years and decide to start looking. They |
| experienced with home buyers is that, almost across | | | | don't have their current home for sale, have not talked |
| the board, they assume they possess limited | | | | to a bank to see if they can afford the house, and are |
| negotiating power. Buyers generally assume that the | | | | simply trying to get an idea of what's out there. You on |
| seller has the property and the bank has the money | | | | the other hand, have gotten a bank to agree to lend |
| so they must have all the power, right? Nope. | | | | you money for a house, you have determined the |
| Buyers enjoy a substantial amount of power in both | | | | neighborhoods you want to live in, and have a list of |
| home-price negotiations and mortgage negotiations. | | | | other houses you are considering. The seller will be |
| But they never believe they do. Let's examine | | | | thinking, "We better not let this one get away, because |
| negotiating the price of your home. Buyers assume | | | | then we have to start all over doing open houses |
| that sellers have multiple qualified prospects considering | | | | every weekend." This situation affords you as a buyer |
| their home. Crafty real estate listing agents lead | | | | substantial negotiating power. |
| buyers to believe that if they don't move on this home | | | | Make sure the seller and seller's agent know you are |
| in the next couple of hours, they could lose it. And | | | | pre-approved by a bank and that you will be buying in |
| because of all this "interest," the seller certainly won't | | | | the next couple of weeks. Let them know you have |
| consider anything less than the full asking price. | | | | several attractive options you are considering and |
| In my experience, there are very few hot markets in | | | | have to be able to get the home at a price you |
| which sellers have their pick of several pre-approved | | | | consider to be fair. Spend some time with the seller |
| buyers who are prepared to close. I live in Baton | | | | and agent going thorough the house and ask a lot of |
| Rouge, a city that was flooded with several hundred | | | | questions. There is a rule in negotiation that sellers |
| thousand people after Hurricane Katrina. At the time, | | | | become more negotiable in relation to the time they |
| Baton Rouge was such a hot market. But barring a | | | | spend with a buyer. |
| catastrophic event that sends hundreds of thousands | | | | Now, consider the facts. The seller has to sell their |
| to your town looking for housing, almost no market is | | | | house to move on with their life. A house is not an |
| that hot. | | | | easy item to convert to cash quickly. You have cash |
| If you are a pre-approved buyer that will be purchasing | | | | (or the promise of cash from the bank), and you are |
| in the next few weeks, you are gold to the seller of a | | | | going to be making a decision among multiple attractive |
| property. Most "interested" buyers are what we in real | | | | options in the next couple of weeks. Make sure the |
| estate call "tire kickers." These are buyers that have | | | | seller and seller's agent know these facts, and watch |
| the inclination that they might buy in the next six | | | | the perception of power shift in your favor. |