5 Bargaining Point Basics Underlie The Mecosta County Area Home Buying

           When a new buyer first approaches their initial Mecosta County home buying effort, chances are they have only a general idea of what the process involves.   Although they are successful people who have arrived at a juncture in their lives and careers where it’s now possible to buy a home of their own, most of the details — and even the terminology — is specific to this single kind of transaction.   More than in most other purchases, there are a number of junctures where negotiations determine the outcome.

          It’s pretty common to assume that their Mecosta County Area home buying venture can be wrapped up with a single offer — one that will either be accepted or not.   But along the way, from the home loan provider to the title insurer to the seller, other bargaining points frequently appear.

A first Mecosta County home buying venture is sure to run more smoothly if these basics don’t come as a bolt from the blue.   Most of these five fundamental bargaining point basics might be guessed at, but anticipating them all will put any first-time buyer in a much better prepared position:

  • Down payment.   It’s not true that buyers must put 20% down to buy a house.   Or 10%.   The amount of the down payment is a bargaining point with the lender, who usually offers trade-off choices.
  • Pre-qualification/Pre-approval.   The difference between the two terms can make a difference in how eager some sellers are to talk turkey.   Pre-qualified means the lender has received a potential borrower’s information;  Pre-approved means the bank has verified it, which presents the buyer in a stronger light.  
  • Closing costs.   The down payment isn’t the only “up front” cost: there are a variety of other home-buying fees and charges that must be paid before the deal is financed.   It’s a myth that the seller is obligated to pay closing costs — it can be a bargaining point, though.
  • Home inspection.   The inspection report informs the buyer what might need to be fixed now or at some future time.   If the buyer has made an offer contingent on a flawless report, if problems are identified the seller can offer to correct them, pay a named amount for a cash-back credit — or refuse (a “take it or leave it” stance).   In any case, it’s another bargaining point.
  • Asking Price/Offering Price.   This is the bargaining point that is fundamental in every local home buying venture.   The seller can accept, reject, or compromise with a counter-offer.   Then again, if more than one buyer is interested in a property, stand back: a bidding war could erupt!  

          With all these (and there can be more) bargaining points to deal with, a first-time buyer might feel intimidated.   That’s where being able to rely on the experience of a veteran Mecosta County Area real estate agent is such an advantage.   It’s not just that you won’t be surprised by steps in the process — you will have access to the approaches and tactics that have led to success in the post.   It’s another good reason why a strategic first call will be to my office!

 

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Terry Reeves

Terry Reeves

Real Estate Professional
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