When you are looking to buy a house, you may have a better opportunity to have an offer accepted (even though it may be lower than what the seller is asking for) when there is quite a bit of inventory available. The professionals at flhomebuyers.com have lots of experience negotiating this aspect. In a market where there are not too many properties available, sellers not only stick to their guns when it comes to prices, they may even be in the enviable position of receiving multiple offers for their property, which results in an even higher purchase price.

Are you thinking about making a lowball offer?

If you are looking to make a lowball offer because that is all you can afford to pay, make sure not to convey that information to the seller. They don’t need to know the reasons behind your offer. And if the seller counters with a number that is higher than yours and maybe a little under the original asking price, don’t interpret this as the moment when you have to walk away. It just gives you an opportunity to negotiate. The door has been opened and you need to know how much to offer in order to let yourself in!

Is a cash offer a guarantee that you’ll get the property?

If you think that because you have cash on hand, the seller will automatically love you and prefer doing business with you over another potential buyer, think again. To a seller, what’s important is getting his property sold, and if a buyer with a mortgage will offer more than you, guess what the seller’s choice will be. The secret to getting a good cash offer accepted is in the negotiation!

How can you negotiate the best cash offer on a home?

Having a winning strategy when negotiating a cash offer means you have to do some work. Start by finding out the seller’s motivation. How can you please them if you don’t know what is going through their minds? You should know if they are selling because they need to move in a hurry due to a job relocation, or if they are selling because they really, really need the cash. This information will be useful when you are thinking of the right offer to present to them. What else will make the seller accept your offer over someone else’s?

Prepare a clean offer

Don’t ask for special items. Ask for a short inspection period or, if you are going to remodel the house for a flip, think about removing the inspection altogether.

Be ready to show proof that you have the funds

The fact that you are not waiting for a pre-approval from a bank should be attractive to a seller that needs to move quickly with the sale.

Don’t walk away from a counteroffer

The seller wants to see how far up they can make you go, so think carefully about your next step.

Tempt the seller with a few interesting concessions

If possible, offer the seller closing cost credits. Or reassure them that no further repairs need to be made to the house.

Study the comparables carefully

Make notes on what makes each of those properties stand out and use these notations to support your offer.

And remember, stress the fact that you have the cash and a quick closing is definitely possible.