In the house buying world, the process still isn’t over for you once you’ve finally found a home you love and could see yourself living in. Now, you will enter the realm of negotiations, and if you don’t get your poker face on quick, you could lose out big. However, just because you’ve given an offer or put down an earnest money deposit doesn’t mean you have to buy this house, no matter what. If certain situations arise, it might be smarter to call it quits. Here’s how to know when to walk away from negotiations.
Always, always, always get a home inspection done before buying a house. It will protect you from so many things! If the home inspection comes back negative and the house is infested with termites, filled with mold or has foundation issues, you might want to rethink buying this property. Unless you have the know how to get rid of mold or termites or are willing to pay a lot of money to get the foundation fixed, this house could be more expensive than worth it for you. Now, you could always see what the seller wants to do about it–if they are willing to pay for these problems to get fixed. But, if not, you might be better off by walking away.
Multiple offer situations are tricky because you can’t give a low offer but you also don’t want to go too high, especially if the house price is already at the top of your price range. One smart tactic is to try to stand out from the crowd. Find out why the seller is selling the home and maybe write a letter about how much this home would mean to you. Send a photo of your family so the seller can put a face with a number. Give an offer number that is different from the rest–something memorable. Sometimes, the good negotiators end up getting the home, even if they didn’t have the highest bid price. You just never know!
If the home has a number of repairs to be completed and the seller isn’t really interested in helping you out, you might want to walk away. Decide if it’s worth it for you to buy a house in need of maintenance and if you can afford the extra maintenance. Sometimes, if the seller gets word that you’re going to walk, they become more willing to work something out. However, don’t use walking away as a scare tactic–only do it if you really mean to and don’t go forward with the deal unless something positive changes for you.
This is a tricky situation. If you get the home appraised and the appraisal price is higher than what you offered, that’s not really fair. You can get your agent to help you negotiate a lower price with the seller or see if they will compromise in another area, such as covering your closing costs. If the seller refuses to budge or come down, you might be better off walking away. There’s no sense in paying more for something than it’s worth.
If you get into a situation with the seller where you are having to do a lot of compromising instead of getting what you really want and the icky feeling is keeping you up at night, you might want to do something about it. Don’t get walked all over! If something is important to you, like keeping an appliance in the home or fixing a ceiling fan that doesn’t work–don’t just let it go. If the seller doesn’t want to help you out at all, maybe it’s time to look somewhere else.
Negotiating for a house can be difficult and filled with lots of back and forth. If your needs are not being met or you don’t feel good about how the negotiations are going, it would be smart to take a step back and evaluate if this is a good deal for you or not. Sometimes taking a step back can help you see the big picture more clearly and will allow you to make the right decision. If you want help with negotiations and want a real estate agent who will fight for you, contact Kevin at Metropolitan Homes Group today! I’d love to guide you smoothly through the home buying process.