One factor that many homebuyers ignore when buying a home is the reason why the seller has put their house on the market. It may not sound important but it can help you in the negotiations. If you’re hoping to get a good deal, you should learn the seller’s story.
There are several reasons they might be selling so here’s a quick rundown of some of them and how that can help you.
The House is Getting Too Small
A very popular reason is that the family is growing. Many people buy a starter home and upgrade from that after a few years. Usually, these are one to two-bedroom houses for a young couple, with room for a guest or one child. But families grow and the owners will need more space as more children come or their child reaches their teen years.
As a buyer, you might skip on these houses if you have a large family yourself. But if you are single or are newly-married, this can be an excellent deal. When you’re negotiating a deal with homeowners who want to upgrade, remember that they want the cash. They’ll likely be using it to add to their purchasing power for a better house. This means you shouldn’t play hardball.
Be open to negotiation and try to only negotiate down a bit unless your real estate agent feels that the house is being overvalued. It also depends on how you like the house. If you really want it then be generous in the negotiations so that you can both walk away happy.
The Seller Made a Mistake
Buyer’s remorse hits everyone and the person selling the house might be regretting their purchase. There could be several reasons for this. For example, they underestimated the noise of the street, or they don’t like the neighborhood. They might even dislike some features of the house after initial use. This could be a pool, a sauna, or something else. The key thing here is that they regret the purchase.
When you are negotiating with a seller that just wants to forget they bought the house, you can drive a hard bargain. Unless they will lose a lot of money on the sale, they will be willing to close any deal as quickly as possible. They would be very happy to break even or even take a minor loss as long as they can get rid of the house.
A Change in Lifestyle
Another potential reason for the sale can be life changes. This can be both good and bad changes. Good changes include the children moving out of the house or a new job in another location. Positive changes to a person’s life can put them in a good mood, but they will also want to get a good deal. For empty-nesters who want to downsize, they will likely use the money they get to buy a more comfortable home and use the remainder for retirement savings. For someone who got a new job, they will be looking to get the full value of the house. But there is some room for negotiation with them since they’re looking forward to what’s coming.
There are also times when a seller may need to sell the house because of personal problems. For example, the house might be up for sale because of the divorce mediation process and the former owners will be dividing the proceeds. Bankruptcy might also require a person to sell off personal assets to pay off debts. These situations put you at a disadvantage. The seller will want to squeeze as much value as they can from the house, and they will negotiate hard. Be willing to walk away from these deals if you think you are losing out.
Outside Factors
The seller also might be putting the house up for sale in response to outside factors. A good example of this is that they feel that the neighborhood has changed from what it originally was. It may be good or bad. Some people think that they should sell because the location has gotten too commercial or too busy. If they feel uncomfortable in the neighborhood, then you may have an opening for further negotiation.
Another outside factor might be the environment. For example, seaside properties that are a bit too close to the sea can go for a good price if you point out the disadvantages that you would be taking on. However, you’ll need to do your research to ensure you are getting a good house out of it.
When buying a house, you shouldn’t settle for the initial price. Use the psychology of the seller to your advantage during negotiations so that you can get a good deal.
