I am looking to purchase my first home...so I am a first time buyer looking for tips--

I found a beautiful condo that I would like to make an offer on. I have a buyers agent who is guiding me through the process...are there specific details I should have her find out about the seller. (ie. sellers motivation, current situation, specific needs)

Do any of you have any experience you could share that helped you negotiate the best possible price?

 

I had a team of two experienced agents on my side for my house ('99) and the condo that I signed for my parents (2001)-- my agents already knew the motivation for sales (house owners were retired and moving to NoCal where they already had a house; condo owners were moving to Australia due to the husband's business) and had good relationships with the listing agents before we submitted the initial offers. The relationship between the agents permitted us to learn the approximate terms and bottom lines of the other offers on the table so we could evaluate how to better those offers (and it's not always $$, although every little bit helps!).

You might check realtor.com or other sites on the interweb for more specific information about the buying process.
And always pay for an inspection and get home warranty, even for a condo!
G/L!

 

Your agent is a professional and should be getting whatever info is needed for you to make an offer. Listen to her.

Good luck!

 

^^^werd x 10

if she's not getting the info for you, then you're working with the wrong agent

 

Just remember, she gets paid on the sale price of the house. Although not very ethical, there is no reason for her to get you a better deal. It ends up costing her in the end.

 

Well I put in my first offer and it has been countered...only a few thousand less than the asking price. Her agent is telling mine that the seller is pretty adamant about the price...saying because it is lower than what similar units are asking for and its fairly priced for a quick sale...However there are recent sales that have sold for significantly less than what she is still asking...and she is already half moved out.

Do you think they are playing hard ball? I'm debating how much I should come up in my next offer.

 

Again, this is something you and your agent should sit down and discuss the details of. The agents should know the market and can run comparables to see what has sold in the last 60 days (because anything longer ago is irrelevant now) and how long it was on the market and what upgrades were done.

Using that information and then hopefully knowing why the seller is 1/2 moved out, you should formulate an offer with your agent.

IMO, if the seller is 1/2 moved out, they likely already have another place and are probably bridging the two (paying interest on both, which means they should be motivated to sell ASAP for a good price, as every day is costing them a chunk of cash). Knowing that, you can play hardball to see if they really are motivated to sell. Maybe your closing date wasn't good for them? ie: If you shorten the closing date with the same offer or slightly more money, see if they bite. Again that comes back to the likely scenario that she is paying a mortgage on both her new place and this one she's selling...

 

Big Your realtor is in the business to make money, which is 6% of the selling price, and that has to be divided into two for herself and seller's agent. Now, how does it benefit her if she helps you negotiate a lower selling price? You gots to do the research and come up with an appropriate price you are comfortable with, and stick with it. Don't let your agent sway your decision(on the buying price) otherwise. Also keep in mind that it is a big BUYER'S market now days, ESPECIALLY on condos. You got the upper hand, and use that to leverage your offer. Good Luck on everything.

 

Although the agent will get more if the place sells for more, she won't get anything if the potential buyer walks. In CA, the agent's 3% of an additional $10K sales price comes to $300, so she shouldn't have any compunction giving the buyer the best advice possible.

And clarky0169, listing prices don't mean anything- it's comparable sales that should be used as the initial basis for valuing the property. FWIW, a property near us listed for $1.39 million a couple of months back; it's now $1.18 million, still overpriced and still unsold.

 

^
What Will Y. said.

That agent should pull all of the active, pending and sold units for the past 30-60 days in the development. Close in bedroom/bath count and square footage. Then you make a decision about how/if to counter.

If there are similar units at lower prices in the project, why not look at them? Lots of folks are in denial and think that there property is better that the one next store for some reason. If the seller thinks her unit is more special than you do, look elsewhere.

 

How far apart are you and the seller at this point?

As for bridging the loans, it really depends on how long ago the sellers bought the place and how long left they have on the loan. My wifes condo has been on the market for 6 months, but it isn't costing us that much since it's a 15 year loan (i.e. we are paying more principle than interest) and the place was pretty cheap when she bought it.

 

The seller is giving me conflicting thoughts. She won't budge on the price...yet she's half moved out and can't buy the house she wants until she sells this condo.

I have come up significantly and she has moved down only 3% from her asking price. As of right now we are 11k apart on a 200k condo. I have been told that if I come up a little, the seller will probably come down a little. And the agents are splitting 7% which i think is high...I dont want to pay a higher price bc of these high commision rates.

The seller bought the place about 4 years ago for alot less than what she is selling...so i know she is making bank off this deal.

 

What she might profit from this is irrelevant. You are buying in the "now", not the "then".

She probably needs to sell as close to the asking price as she can in order to AFFORD the new house. So she's likely willing to wait until she gets that money. In the meantime she might be living with relatives and storing her stuff somewhere, who knows. Your job isn't to find out her situation, it's to get the house you want for the price you are comfortable with.

IMO, if you need to come up another $6K, you should probably look elsewhere or give her one "take it or leave it" offer with no counteroffers accepted, just slightly higher than your last offer (or the exact same as your last offer... really rub it in!).

 

^^ You have to decide how much you really like the place what you are willing to pay. While you don't want to get screwed, neither does the seller. If the "final" price the seller gives you is above what you think the place is worth, then move on.

 

Split the 11k and you will get the deal I am sure. I been a mortgage broker and realtor for 8 yrs now and that would be etiquette when negotiating a deal you typically split the difference. 5,500 is a difference of about $28-$32 a month on a 30 yr note.

 

Oh and 7% is pretty much going rate these days...

 

for condos in CA, and 6% on single family homes through conventional brokers.

FWIW, the $11K difference between clarky0169's offer and seller's counter translates to a $385 difference in each brokers' commission (3.5% to each broker). To get the deal done, split the difference, and have the seller throw in some stuff (escrow fees, home warranty, entertainment center) if that's an option.

 

Regardless of anyone else's agenda, don't pay more than you want to...that is how people get carried away and lose track of their budget --- unless you have looked at a wide variety of places and this is definitely "the one" that you must have. Even xxx.xx more per month more than you want will take away money that you might have otherwise allocated elsewhere (eg: savings, home improvements, etc.) Just my thoughts.

 

no deal...oh well...it wasnt meant to be...on to the next one

 

That's the way it goes, just take your time and everything will straighten itself out.

 

Can't take it personal or get attached to a house because after all its just a house.

 

its impossible to negotiate a good deal when you have an emotional attachment