Most markets favor buyers and haggling
Posted on Tuesday, June 23, 2015 at 3:39:59 PM
Markets may tip either in favor of the buyer or the seller, and these days most seem poised to benefit buyers.
Research from RealtyTrac indicated that in 59 percent of the 315 counties studied, buyers are purchasing their homes for below market value. With demand not so high in those areas, people there can more easily negotiate prices than in other places.
"Buyers can haggle better with sellers when they are already prequalified or preapproved by a lender," Patrick Deady, vice president of Home Loan Investment Bank, explained. "Therefore, it is important to speak with your bank and have a prequalification statement accompany any offer for property. Also, the home inspection is the next opportunity to haggle over price. The prospective buyer can point out problems that need to either be corrected or require a price reduction."
However, negotiating prices too heavily isn't always advised. Especially for people seeking residential financing in markets in favor of the sellers. In these areas - 27 percent of the markets studied by RealtyTrac - haggling could hurt a buyer's chances to land the home he or she wants.
"The only circumstance where it may not be advisable to negotiate the price of a home is when it is a sellers market and you are aware of multiple offers coming in on the property," Deady concluded.