Everyone wants to negotiate a great deal when buying a home, especially since it is often the largest purchases in a person’s life. As a Northern VA real estate broker, I am inevitably asked the question, “what is the best price we can negotiate in this market?”. My answer to this question is as vague and ambiguous as a politician running for a public office, but for good reason. Every home buying situation is unique and every property is one of a kind! Here are homebuyer negotiating tips in Northern Va.

What is Your Real Estate Goal?

A smart and experienced realtor will first seek to understand the client’s real estate goal. This should be the driving factor to determine the best negotiating strategy to purchase a home. A homebuyer looking for a primary resident will have drastically different goals then a buyer purchasing an investment property. A first time homebuyer and an executive relocating for a new job, though both looking for a primary home, will also have different real estate goals. The time frame to move into a home or an investors need to meet a 1031 exchange property identification date are also excellent examples. A buyer must determine what goals are a must and which can be adjusted for the right home or deal.

How Motivated Are The Sellers?

It is unlikely a home seller will advertise the lowest price they are willing to accept, though at times their listing agent may spill the beans. If you are not so lucky to have an experienced buyers agent to ask probing questions or explain the indications of a motivated seller, here are a few to help.

• Days on Market? (Longer the more motivated)

• Sellers Original Purchas Price? (How much equity do they have)

• Previous Price Changes? (Have they dropped the price)

• Time of Year?

• Relocation Company Involved?

• Many More… (I can’t divulge all my secrets, but can put them to work for you, contact me)

Keep in mind these are not hard fast rules, but possible indicators to a sellers motivation.

Market Trends?

National market trends can be found in headlines in today’s major media outlets and very misleading. Homebuyers need to always be aware that real estate is local, even down to specific real estate trends in communities. An excellent market statistic for Northern VA homebuyers is the Average Home Sale Price Vs. List Price Ratio below. This will indicate what the average buyer and seller have negotiated from list price to achieve an agreeable sale. Here is the current Northern Va Sold Price vs List Price ratio for multiple price ranges:

Generally sellers are willing and expecting to negotiate within 3% of list price. Luxury home sellers are often willing to negotiate a higher percentage. Of course this depends on the specific area, price range and home. You can find market trends in specific zip codes I have completed here, Northern Virginia Real Estate statistics by zip.

CMA

A Comparative Market Analysis is a tool used by real estate agents primarily to determine a list price of home before putting it up for sale. Before making an offer on a specific home in Northern VA, homebuyers should have their REALTOR complete a CMA. Here is an article about the importance of having a buyer agent, Caveat Emptor or Buyer Beware.

Ties That Bind!

“Joey, What should we offer on this home?”..... Again, this depends! It would be reckless for a real estate agent to answer this question before first understanding the client’s goal. Are there other offers? Is it worth the risk of saving one or two percent at the cost of loosing the deal? Does the chosen home fit all the criteria logistically and emotionally and most important, how tied to the outcome is the buyer? There are a myriad of questions that need to be understood before giving advice on negotiating on Northern VA real estate. In a buyers market with high levels of inventory, the buyers negotiating positions becomes stronger. Even some first time buyers looking for a home to live in a few years and then convert to a rental will be less picky on criteria. This will allow for more aggressive negotiations, since price and ROI outweigh other criteria.

Northern Va Real Estate ROI

The return on investment of a home and a rental property are much different and may or may not hinge on monetary gains. Rental property or future rental property negotiation comes down to numbers and cash flow. Rentals can be treated more as a commodity, but a “home” offers a much different return. A place to raise a family, make memories, honor birthdays, celebrate graduations, dancing, laughing, crying, loving and to live this journey we call life. A “home” offers a much higher return that can only be determined by the unique needs of the individual buyer. Make sure your Realtor is asking the right questions and guiding you based on your individual needs! You can contact me to help with your real estate goals or more homebuyer negotiating tips in Northern VA.