The real estate market is incredibly competitive across the country, and homes sell with multiple offers for record prices in Salt Lake City.
As a potential buyer, it can be extremely overwhelming shopping for a home when the market is hot and the competition is stiff. Luckily, an experienced real estate agent can guide you along the way and help you avoid wasted time and money. Before you start putting in offers, check out these seller’s market negotiating tips.
Know Your Limits From the Start
Buying a house is exciting, but it’s also a huge financial decision that needs to be considered carefully. It’s crucial to know your limits before you fall in love with a house outside of your price range, especially if there’s a bidding war driving up the price. Before you even attend showings, take some time to go through your monthly expenses and see how a mortgage payment would fall into the mix.
Remember, your agent and loan provider can help you determine anticipated closing costs, down payment, and monthly payment, so you’re set up for success at the beginning of your home buying journey.
Know When to Walk Away
In the current market, buyers often put in at least a few offers before a seller accepts. Each denial can make you feel a bit defeated, but it’s important to stay the course and keep your eyes on the prize.
In the heat of the moment, it can be easy to forget about your budget and go well over the asking price for the home. If you can afford the additional expense, great! If not, don’t be afraid to walk away if the price is too high or look at homes priced below your budget so you can compete in multiple offer situations which bid prices up.
There will be other houses out there that will fit both your non-negotiables and budget. Your real estate agent will help you stay the course and remind you to think about how much time and money you want to spend on a house before agreeing to a purchase.
Be Prepared for a Long Negotiation Process
Negotiations are never fun, but in a seller’s market like ours, they are unavoidable. Lean on your real estate agent to help you create a winning negotiation strategy.
It’s important to consider what your non-negotiables are before you put in your offer. Would you be willing to pay more than the appraised value if the appraisal comes in less than the purchase price? Would you consider non-refundable earnest money upfront or after the due diligence is complete?
Set up your negotiation boundaries with your agent right off the bat so you can be on the same page moving forward, and keep in mind that in a competitive market like ours if you’re not willing to step it up, you might not be able to get a home under contract. It’s that competitive right now.
Work with an Expert Negotiator
It’s crucial to work with an expert negotiator, like Kevin Coyle, who will have your best interest in mind throughout the entire home buying process.
Real estate agents deal with negotiations, counteroffers, and contingencies daily, so there’s no need to go it alone. In fact, 88% of recent buyers purchased their homes through real estate agents or brokers. Agents are widely trusted for a reason!
Seller’s Market Negotiation Tips Recap
Finding the perfect home is what we all want, but with inventory as limited as it is right now, your dream home might not be possible. That’s hard for me to say, but with housing inventory as low as it is this year, the sheer number of buyers in this market, and double-digit multiple offer situations that exist, it makes sense to be realistic.
That said, home and condo prices in Salt Lake County are rapidly increasing, and it’s not likely that our local market will decline any time soon, so it might make sense to start your search sooner than later with interest rates still at all-time lows and the extreme levels of inflation that we see in the cost of building materials, land, and labor.
Ready to Buy?
Are you ready to purchase a home? Kevin Coyle is a local real estate agent with 22 years of experience, and he knows the ins and outs of negotiating in this seller’s market. If you’re ready to find the home of your dreams, contact Kevin today!