How To Tell If A Seller Is Inexperienced and Will Sell Low
Like buying a car, purchasing a home leaves plenty of room for negotiations. Unless the house you’re interested in is in very high demand and in a desirable area, you likely won’t have to pay the asking price.
That being said, negotiating can be difficult. You don’t want to lowball the seller and miss out on buying the house. You also don’t want to end up paying more than you have to.
While experienced sellers can be difficult to negotiate with, inexperienced sellers may often settle for much lower offers.
But how can you tell is a seller is inexperienced? How do you get them to accept a lower offer?
Let’s take a look at how you can save some money on your next home purchase.
How Long the House Has Been on the Market
First, you can check to see how long the house has been on the market.
Experienced sellers understand that selling a home isn’t always a quick process. However, new sellers might panic if their listing has been on the market for too long or if their listing has expired.
If you’re dealing with an inexperienced seller who is itching to sell their home, there’s a good chance you can get them to accept a much lower offer than they were hoping for.
An expired listing often signifies low demand. You can use this to your advantage when negotiating with an inexperienced seller.
First-Time Sellers Without an Agent
Next, you can simply ask sellers if they have ever sold a home. Homeowners that are moving for the first time may be very naive when it comes to negotiations.
First-time sellers may make the mistake of trying to sell their home by themselves. Without an agent, they don’t understand how to price their home, how much they can expect to sell their home for, and the lowest offer that they should accept.
Real estate agents are experts. Sellers who choose to avoid hiring an agent are much more susceptible to accepting a lower offer.
How to Convince a Seller to Accept a Low Price
Knowing how to get a seller to accept a low offer can be difficult. Use these tips to get your home for the lowest price possible.
Hire an Agent
First and foremost, you should consider hiring a buyer’s agent with a strong reputation.
All it takes to find a good agent is a quick internet search. Look for agents with a high number of positive reviews in your area.
Agents can do all the hard work for you. From analyzing fair market value to negotiating, real estate agents are experts in helping buyers get the home of their dreams at a price they can afford.
Unless you are an experienced buyer, hiring an agent is a must.
Justify Your Offer
Don’t make a substantially low offer just for the sake of it. If you make a low offer without any justification, you’ll likely have trouble getting a seller to accept it. In many cases, sellers will choose to end negotiations and look for other buyers if they think you are lowballing them.
Perform an inspection. Find flaws in the house itself and the surrounding area. Use this information to justify an offer that is lower than the asking price.
If Possible, Offer Cash
Sellers who need to sell their home as quickly as possible will be much more inclined to accept a lower offer if you can pay upfront in cash.
Cash offers are quicker and less risky as financing can always fall through. If you are able to do so, offering cash is a great way to get a seller to accept a lowball offer.
Buying a house can be a difficult process. Understanding how to negotiate and identify opportunities to get a home for less than the asking price could save you thousands of dollars on your next home purchase.