When the demand for houses in a sizzling marketplace outweighs the supply of houses available, many consumers think the highest offer is a sure-fire way to claim ownership of their dream home. Similarly, in a panic-mode housing market such as the one we have right now, the old axiom “Analysis Paralysis” becomes an obstacle to getting the deal you want. While you wait for the prices to hit “bottom”, the savvy buyers snap-up the property you really want. The professionals at KARLHAUS REALTY™ know that bidding for a house doesn't always require upping the stakes and that the “bottom” is an ephemeral quantity as no one ever knows the bottom of a cycle until it has passed by. In the end, it comes to well-informed negotiation. Negotiation is not just offering less than the Seller is asking and waiting for a “yes” or “no”. Negotiation is a trade off of value, timing and intangible benefits between the two parties to arrive at equilibrium of terms that both are willing to accept.

Be Flexible

One tactic that works in any market is to accommodate the seller as much as you are able. As a buyer, you have to be flexible and willing to sacrifice a bit. Whether it's being willing to close one month earlier or later, do your best to meet the seller's desired closing time. Additionally, be willing to overlook the more minor and but less-than-perfect characteristics of a given home because other prospective buyers may not be able or willing to do so. If the seller is under pressure and wants the house sold quickly, they'll prefer to work with the buyer that can accommodate them the most.

Be Prepared

If you are willing to make the investment, then you must be a qualified, solid, desirable buyer. Get a copy of your credit report and settle any debts that may be outstanding. "You'd be surprised how many people get turned down for a loan because of an old debt they had forgotten all about." Get pre-approved for loans and mortgages. Sellers want and need a willing and able buyer, someone who is stable and ready to make a commitment to the property; and that after making the commitment, can carry it through to closing without problems. Going into the negotiation process as a pre-approved buyer puts you at a major advantage.

Connect with the seller

Create a rapport with the seller and let them know why you prefer their house to others. Homeowners are emotionally connected to their home. Even when selling their home, they often feel tied to the integrity of the house. They have likely spent a large portion of their lives within its walls. Often, fond memories of the family are interconnected to their home. Because the seller loves the house, they are usually inclined to sell it to someone who will love it too.

Clean, simple offers are best

Eliminating as many contingencies as possible will give you an advantage when involved in a bidding war. If you have a home to sell before purchasing, sell it first. Reducing uncertainty makes the buyer more appealing to the seller and will create leverage for the buyer.

Show them the money

Be willing to increase the size of your down payment or make an all cash offer. Sometimes the best way to win a bidding war and avoid paying a higher price is to increase your down payment. Sellers favor strong buyers, if you can afford to make an all cash offer, do so. That's almost always a definite way to slam-dunk a sale and it certainly does not preclude you from getting financing later if desired.

Work with the best in the business

Be sure to choose a sales associate who has an excellent reputation with other agents. Working with a KARLHAUS REALTY™ Associate who is known in the industry for their knowledge, integrity, professionalism, and credibility will always work in the buyer's favor. We at KARLHAUS REALTY™ at the Spruce Creek Fly-in not only sell the Fly-in lifestyle, we live it!