There are several levels of negotiating power, where do you fit when it comes time to buy a home?
If you are a first time home buyer you have some advantages, for starters you don’t have a contingency upon selling a current home. This can be a big disadvantage for a home buyer when they have a home they need to sell. Especially when competing with other offers. The best negotiating power you have is to be the highest price because normally first time home buyers are financing their first home.
The levels of negotiations go in this manner for those from the least to the most power:
1) A buyer who wants to buy a home, but doesn’t even have their home on the market yet.
2) A buyer who wants to buy a home, and is a contingency but they do have their home under contract.
3) A buyer who wants to buy a home, and is a contingency and they have their home under contract and they have inspection resolution and they have the appraisal completed with no complications.
4) A buyer who owns a home but agrees and can afford to get a “Bridge Loan” or a “Home Equity Line Of Credit” which borrows their down payment out of their current home.
5) A buyer who claims they have a “Hard Money” loan, sometimes considered as “Cash” but still not quite 100% cash.
6) A buyer who has 100% guaranteed immediate cash funds in their bank with a proof of funds letter from their bank.
7) A buyer who has everything in “6” above and also requires no inspection or no appraisal or perhaps a partial inspection for only major item(s).
I love helping you determine your best options when it comes time to submitting an offer on your home. The best thing to do is to explore all your options with my recommended lender before you start offering on homes so you know the best options you have. By the way, going with my local preferred lender also helps in your negotiations. It installs confidence to the listing agent knowing my buyer has chosen my preferred lender who promises to never fail me when it comes time to processing the loans I recommend.
I love helping buyers, especially when I have such a good showing assistant, and because of this you really get to of the best for the price of one!
Sincerely, Jim Urban, your real estate consultant for life. Please don’t keep me a secret!