Of all the things that got more expensive in 2021, inflation hit the housing market harder than just about any other section of the economy. The year was defined by high demand, low supply, intense bidding wars, and above-list sale prices.
That’s not exactly the kind of environment where buyers have the leverage to demand bargain-basement prices. Even so, those with a strategy and an eye for opportunity can always find sellers who are willing to go low.
But that doesn’t mean you can just make an offer of 20% off the asking price and expect success, according to Lucas Machado, president of House Heroes LLC.
“At the end of the day, the homebuyer and home seller need to settle on price and terms that work for everyone involved,” said Machado. “If that’s achieved, all parties walk away happy. If that isn’t achieved, no home sale will ever occur.”
To better ensure you get the home you want for a dream price, follow these six steps from the experts.
1. Do Your Research Before House Hunting
In the end, success or failure in house hunting depends not on skill, instincts, or luck. Success depends on research. Here’s what you need to know to avoid wasting your time writing offers to sellers who will only take top dollar.
Know the sellers
You need to know the seller’s reason for selling, according to Mindy Jensen, podcast host, author, and community manager at BiggerPockets.com, a real estate social network and marketplace.
“If they are trying to make the most money they can to take advantage of a hot market, your low-ball offer has almost no chance of being accepted,” Jensen said.
She went on to say that if the home was inherited, there are out-of-state owners, or they’ve tried and failed to sell the home previously, this might be a green light to a low-ball offer, she said.</…….