Every home buyer in Albuquerque wants to make the perfect offer when buying a home. Ideally you won't have to negotiate and you can move on with the deal and move into your new home.

Sure, that could happen. But usually, there's going to be some negotiation to nail down the perfect offer. But sellers are known to reject offers for a variety of reasons. Or they make counteroffers. This is especially likely if you bid low, or when you’re up against multiple competing offers.

Here are a few rules you should know before you start negotiating:

Act Fast

When the seller makes a counteroffer, don't sit on it. You should respond as quickly as possible. The longer you wait, the more space you leave for another buyer to swoop in and nab the property. Also, if a seller senses hesitation, they may decide to withdraw their counteroffer before you even have a chance to respond.

Raise Your Price (Within Reason)

Of course you don't want to overpay for your home. But you may have to up the offer, especially if you initially made a lowball offer. You agent will lend their expertise to determine how much money you should add to the offer.

Before you make an offer, talk with your agent about how high you’re willing to go if the seller doesn’t accept your bid. Then your agent can make the counteroffer look even more attractive by pointing out similarly priced “comps”, recently sold homes in the area of the home that are comparable in terms of square footage and features.

As your agent negotiates, it can feel like things are escalating quickly. It’s stressful. You may feel a sudden urge to do whatever it takes to win.

Before you go overboard, there are two things you must keep in mind:

  • You can’t exceed the monetary confines of the pre-approved mortgage you received from your lender.
  • You shouldn’t overextend your budget.
  • Because your counteroffer has to be an amount you’re comfortable spending on a home. You want that new house and to keep living your life. Plus: You’re not out of options yet.

Increase Your Earnest Money Deposit

Increasing your earnest money deposit (EMD) — the sum of money you put down to prove to the seller you’re serious (i.e., “earnest”) about buying the house — is another way to show the seller you have more skin in the game. A standard EMD is typically 1% to 3% of the sales price of the home. Making a counteroffer with a 3% to 4% deposit could be what you need to persuade the seller to side with you.

Demonstrate Patience About Taking Possession

Depending on the seller’s timetable, changing your proposed possession date, the date you take over the property, could sweeten the deal. If the seller wants to stay in the home for a few days after closing, try offering a later possession date. You could also draw up a “rent-back” agreement, meaning the seller pays you rent for staying in the home for a set period of time after the closing date.

Negotiating the right price for a home for sale in Albuquerque can be a challenging task. But if you follow these tips, you can have a better chance of getting the perfect deal on your new home.

Contact us today to help you buy or sell your next home in Albuquerque. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates.

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