In Part 5 we discussed the process of making an offer. Here we will talk about the negotiation of the offer.
If you are serious about buying a Los Angeles home then don’t listen to the friends who are telling you that there are deals to be made, and you should just make low ball offers until a seller rolls over and says “take my home.” It doesn’t happen that way.
Above all, be prepared to negotiate.
The whole process of home buying and, of course home selling, is about give and take. It is about reasonable people coming together to make things happen. A seller wants to sell, and a buyer wants to buy.
How do we bring the two sides together? Each one has their own representative, the real estate agent. When a couple get divorced they each hire a lawyer who “battle out” the terms. I don’t think there has ever been a case of one attorney representing both sides. So make sure you have your own Los Angeles Realtor® helping you to get the best deal.
Your agent will inform you what a reasonable price is. If the home is reasonably priced then you need to make a reasonable offer. If a reasonable offer is presented, then the seller should entertain that offer, either by accepting it or negotiating with a counter. If a counter is presented a buyer can either accept the terms of the counter or negotiate their own terms with a counter of their own. Supervised by two go-betweens.
Above all look at the bigger picture. Don’t try and low ball a seller. It rarely works out. Although it shouldn’t work that way both sides take negotiations personally, and all it really is is a business transaction. The seller knows his or her bottom line and you know your top. Try and stay within a reasonable range and you will both win.
And if all goes well and the offer is accepted, any items of concern that are discovered during the escrow period can also be negotiated with cool heads prevailing. Learn how to negotiate the inspection phase.
If you put yourself in your real estate agent’s hands and trust their negotiating powers, you will end up buying the Los Angeles home of your dreams.
Buying a Los Angeles Home – The Series:
Step 1: Getting ready to buy
Step 2: Why use a Realtor?
Step 3: Define your criteria
Step 4: Start your search
Step 5: Make your offer (about the purchase contract)
Step 6: Be prepared to negotiate
Step 7: Go through the escrow process
Step 8: Taking Title
Step 10: Prepare for your new home
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