Regardless of how desperate some are to get their hands on that piece of property after being approved for a home loan, most buyers like to play hard to get because then they have some semblance of control on just how much they will be asked for by the seller.
True, in a buyer’s market, you have all the sway. After all, the seller is the desperate party in this sort of situation. But what happens when you stumble upon the perfect house in a seller’s market? Where you have to play to the tune that the selling estate agent plays? What then?
It is because of situations like this that you should learn how to deal with sellers. There are some things you might say that will all but ruin your chances of getting landing that house. Some of these things aren’t offensive per se. They are just a little off-putting and depending on the kind of mood the selling estate agent may be in, they might completely turn them against you.
“I plan to get pre-approved for my mortgage later.”
As soon as you say these words, any agent worth their salt will quickly relegate you to the ‘non-essential list of clients’. The fact that you are not pre-approved for a mortgage yet, especially if you do not have family money or didn’t recently rob a bank, shows the estate agent that you are not ready to buy a house just yet.
Yes, there might be a good chance that you have excellent credit and will get pre-approved for an outstanding amount but as things stand right now, you are not ready to buy a house. That means that you are not ready to view one nor commit to an offer. Which in turn means, that as of this very moment, you are a waste of everyone’s time. Getting pre-approved first shows your commitment. Plus it is a wonderful and foolproof way to determine what kind of property you can afford.
Excitedly express your like or dislike of the house
If you crack right on and hit the roof as soon as you see the house that you want you will be essentially showing your hand. From that moment on, the balance of power will have shifted over to the seller’s side. You want to keep your cool and play just a tad bit aloof. Show enough interest to reveal that you are a serious buyer but not too much excitement to show that you will do anything to get that house, including selling your kidney.
On the other hand, if you are overly critical of a piece of property just so you can get the seller to give it to you at a throwaway price, you might end up losing the sale altogether. Estate agents play with the odds. They would rather focus on a much lower offer that they think has the highest potential to close than run around chasing after your offer that they think is on shaky grounds. You need to find the fine line between being too interested and too disinterested.
Tell them how much you are willing to spend
Of course, it is often prudent to give the seller a range within which your price will fall, just don’t tell them how high you are willing to go. In fact, the best investors advise you to give yourself some wiggle room. The range that you tell your seller should be a little below how much you are actually willing to spend. This gives you some sort of bargaining power and it keeps the seller within range. By not showing your hand, you stand a better chance of having your offer accepted at the best possible price.
Whether you are looking to buy or sell, do not overplay your hand. Keep it cool and let the other guy do all the talking. This way you will learn more about the property and you may even identify avenues through which you might bargain for a better position.
For additional tips, here’s a nice Rick Otton video that shows a case study of an actual deal on how to talk and negotiate with the seller.Tags: 3 things not to say when buying a house, what not to say to sellers when buying property, words to avoid when buying property