In the current market, on average, a home generally sells for $4,000 - $10,000 less than the asking price. What does that mean for you as a buyer? Or seller?
As a Buyer:
1) Get comfortable with a home that’s a little over your price range. You are right where you need to be. An experienced Realtor can help you navigate the negotiation process, which can be sticky since the seller believes their home is worth top dollar and you, the buyer, believes that every smudge on the wall should save you a thousand dollars. It’s important to note here, that the goal is a win-win for both parties. So, just because it’s listed a little higher than your budget doesn’t mean that’s what you’re going to pay.
2) Paying what the home is worth. Though you can’t 100% rely on an appraisal to save your checkbook, there is hope that it will keep things honest. An appraisal keeps sellers in check from asking an outrageous amount of money for a home that’s not worth it. In the real estate transaction, the appraisal contingency allows for you to re-negotiate the price you are willing to pay, if the home does not appraise for the price the seller is asking for it. This is added protection for the buyer and accounts for some of the occasions where the price of a home had to be lowered.
3) The Seller is willing to work with you. Don’t take advantage of this, but certainly use it. No one puts a home on the market who doesn’t want to sell it. Attention Buyer: You have the money, you have the power. What is a home worth? Only what someone is willing to pay for it. Period. And that goes for anything. Again, the goal here is a win-win for both parties, so make an offer. Try to make a good one – a strong one, but make one. If it’s a decent start to the negotiation, the seller may ask you to come up a bit. If it’s not what they’re looking for, they may reject it and throw the papers back in your face (exaggeration, since you don’t actually hand them the offer face-to-face). The point is, don’t be afraid to go for the home you want, within reason of your pre-approval amount. This is Real Estate. You have to pay to play.
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