Richmond Hill is a city in south-central York Region, Ontario, Canada. Part of the Greater Toronto Area, it is the York Region’s third most populous municipality and the 28th most populous municipality in Canada. Based on excellent educational resources and a safe community environment, many families settle here.
Have you found Richmond Hill Homes for sale that you want to buy? If so, you may be ready to bid full asking price or even more to ensure you beat out any potential buying competitors out there. This is where emotions can sometimes outweigh logic, so before you jump in with an offer way above asking price, it’s good to take a moment to consider if the house is also a wise investment.
Here are some things to consider plus some price negotiation strategies that can help ensure you’re getting a great home for the right price when you try to buy Richmond Hill Homes for sale.
1.BE QUICK ON THE UPTAKE
It is critical to respond to counteroffers as soon as possible and to avoid making a counteroffer with any term that is not truly a deal breaker. For example, when purchasing Richmond Hill Homes for sale, delays in responding leave space open for another buyer to step in and create a bidding war, or even more likely, for the seller to perceive that other serious buyers might be out there. A seller’s mere perception of a hint of a whiff of the scent of a potential bidding war is a homebuyer’s number one nemesis, ratcheting up the possible sales price in the seller’s head on an exponential basis.
2.MAKE YOUR REAL ESTATE AGENT WORK FOR IT
If you are competing with other wanna-be buyers for Richmond Hill Homes for sale, your real estate agent’s prep work and presentation of your offer can be critical to your success. Hopefully you interviewed several real estate professionals and hired one you can trust and know will go the extra mile for you. Always communicate with your agent to ensure you both are on the same page in terms of expectations and deal breakers.
When you want to ask or tell something to the seller who put their Richmond Hill Homes for sale , always always always go through your real estate agent, who will communicate your request or concern to the seller’s agent. I know it seems inefficient, but it is truly a rookie move to contact the seller directly. It’s just not done, mostly because the terminology is tough to master and legally sensitive. Also, some seemingly innocent and minor changes to your agreement with the seller might create problems with your lender; your real estate agent is better equipped than you to see these red flags. It will prevent the catastrophic misunderstandings that can result when you or the seller says something even slightly different than what you each actually mean.
3.DO NEGOTIATE WITH AN ARRAY OF TERMS
The more you know about what is important to the other party, the better you can offer terms that will win the deal when buying Richmond Hill Homes for sale .
All-cash deals often trump other offers in television show negotiations, but in real life, most buyers rely on a mortgage lender. That doesn’t have to be a barrier to winning a deal, if you understand non-financial factors that are also important to the seller. For instance, you can underscore your intent by having more of the earnest money become nonrefundable as the deal survives critical phases, such as the appraisal and the home inspection. That gives the seller more incentive to be patient with your lender’s process. Use the long process of negotiating to understand the other side’s priorities and point of view and the negotiation should get easier as you come closer to agreement.
4.GAUGE THE SITUATION WHEN DEALING WITH A DEVELOPER/BUILDER
A lot of this talk about negotiating and price and terms, etc. may be moot when you’re buying a newly built Richmond Hill Homes for sale. By and large, the builder/developer dictates the terms on which they will sell you a home in their community, and you either take it or leave it. The list price is the price you pay, though in many markets, developers and builders are willing to negotiate if they have a large amount of inventory.
The builder will have a standard contract with a standard required deposit, standard contingency removal or objection periods, and a standard set of disclosures that they make to every buyer. The larger the builder, the more set they will be in their ways and to their price. That said, it doesn’t hurt to ask for concessions or upgrades. Furthermore, builders hate getting sued, so they generally try to create a standard contract that affords you most or all of the same protections your real estate agent would build into a contract for you.
5.CHECK THE COMPS
The more money you offer to buy Richmond Hill Homes for sale, the more likely the seller will accept. Your real estate agent only gets paid if the seller accepts, so you can see why some agents tend to include or emphasize the highest priced comparables, even if they aren’t the most similar comps for your property. Ask your agent for a copy of your Comparative Market Analysis (CMA) and ask for the full MLS listing details of the several most similar comparables. That way, you can decide for yourself how similar they really are!
6. THE INSPECTION WON’T ALLOW YOU TO REOPEN NEGOTIATION
It’s certainly acceptable to ask for a credit if the inspection reveals major problems. But in a tight market, you may not get it. These days, it’s unlikely that a seller will make significant repairs, and you’re better off asking for a credit at closing so you can hire your own contractors. In some popular Richmond Hill Homes for sale, prospective buyers do an inspection before making the offer so they can submit an offer with fewer contingencies.
7.CRUNCH THE NUMBERS
Before you finalize your decision about how much to offer to buy Richmond Hill Homes for sale, have your mortgage broker run a monthly payment on your offer price and estimate your property taxes and insurance. Often, buyers inch up in price during the house hunt and in the course of formulating their offer, so it’s important to have a final check on the exact monthly and annual obligations you will incur if your offer is accepted. Also, if you’re seriously debating between offering two different prices and are having a hard time making the decision, ask your mortgage professional to run the payment, taxes and insurance on both of the prices you’re considering. You might be surprised at how small (or large) an impact a $5,000, $10,000 or $50,000 difference in purchase price has on your ongoing payments, and it may help ease your decision making between the two amounts you are thinking about offering.
Even in today’s hot real estate market (in most parts of the country) it’s not often that a seller isn’t willing to negotiate — if not on the price, then on other matters such as the closing date, or including certain items like the barbecue grill, the washer and dryer, etc.
On the off chance that you’re in a market that isn’t boiling right now, you could end up being the only buyer making an offer. If that’s your case, there’s a good chance you could end up buying lower than the listing price.