Negotiating With A Phoenix Home Seller

Let Your Phoenix Realtor Guide You.

Permit your Greater Phoenix real estate agent to guide you through the process of determining the right initial price offer. It’s always best to let your Phoenix Realtor present an offer without your presence since they are specially trained in negotiating techniques and can detect signs by the seller that indicate an urgency to sell. However it is always exclusively your decision to determine an offer price with any conditions or contingencies attached to the offer. These following hints will help guide you through the real estate negotiating process.

Be Aware of Potential Real Estate Agent Conflicts.

Typically homebuyers will drive-by a home for sale and contact the real estate agent in Phoenix listed on the for sale sign. Realize that the contact agent is generally the listing agent for the seller. As such, they are obligated to primarily represent the interests of the seller and not you as the buyer. This potential conflict of interest could be a disadvantage for you as a Phoenix area homebuyer. Often it is best to retain your own real estate agent who will exclusively represent your interests. Hiring your own Phoenix Realtor costs you nothing since the seller pays the commissions so you may as well strengthen your negotiations position by hiring your own agent.

Loan Prequalification and Preapproval.

A loan prequalification gives you a negotiating advantage. A loan preapproval will give you a greater advantage. Having a preapproval letter with an approved loan amount tells the seller that you have been approved to buy their home providing it is within the approved loan amount and the home passes the lender’s inspection. You become a more credible buyer. Depending upon the seller’s urgency to sell, they may accept your lower offer price versus that of another buyer who has yet to be approved for a loan.

Since you would be preapproved, an escrow close could occur quicker with less potential of last moment problems with a mortgage lender rejection.

Determining Your Initial Real Estate Offer.

You first need to know what a reasonable real estate market price is for a particular residential neighborhood. Have your Realtor prepare a Comparable Market Analysis (CMA) for similar homes previously sold within the targeted neighborhood. An real estate appraiser will only generally consider comparable sales within the previous six months.

It is important to know whether asking prices are trending up or down.

Consider Home Seller Motivation.

Consult with your real estate buyer's agent to try and determine the urgency of the seller to consummate a sell. The length of time the Phoenix home has been on the market could be key. If it’s been for sale for a long duration, the seller is more likely to consider concessions. The sale could be motivated by a divorce, a possible foreclosure, job transfer or an urgency of relocation. The seller may have purchased another home that is nearing escrow close and they may be stuck with two mortgage payments. On the other hand, a seller may very well be willing to “wait it out” until the asking price is offered.

Key Negotiating Strategies To Consider.

When previewing a home when the seller is present, do not show any positive emotion. Be courteous and friendly but do not demonstrate your excitement about any features. You don’t want to give the seller any hints that you are anxious to buy his/her home.

Consider being flexible with your moving dates. The seller may need some extra time after real estate closing for convenience. Considering a “leaseback” for a short time may give the seller access to funds from the sale while accommodating his/her closing on another home they may be purchasing. If the situation fits, the seller may consider a smaller offer because it fulfills convenience. A word of caution…do not enter into a leaseback of more than 30 days because the lender may consider you an investor and could invoke a larger mortgage interest rate.

Making Your Initial Offer On A Greater Phoenix Home.

Rarely is an initial offer accepted by a seller. Therefore consider offering a price that is below what you are actually willing to pay. Typically the seller will count-offer and if you get lucky that counter-offer may be well below what you are actually willing to pay.

Always make an offer contingent upon reasonable factors. Your Phoenix area real estate agent can give you guidance to protect your interests. At a minimum always make your offer contingent upon a home inspection. If a Phoenix home inspector uncovers construction or repair problems, it gives you the opportunity to rescind the offer or gives you an opportunity to renegotiate.

Conclusion

The goal is offering a price on the Phoenix real estate that is reasonable enough to get the home at a price that is less than you are actually willing to pay without insulting the seller. But you want the offer to be close enough that the seller isn’t willing to lose the sale to you as a strong buyer.

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