As an upsizer seeking to buy your next home, or a first homebuyer, you'll be putting a lot of trust in your chosen agent to work hard to make the best possible deal when you've targeted your next property.
Hopefully, you will have interviewed at least three agents who outlined their neighborhood connections and experience, validated the types of property you seek and explained their negotiation strategy to close a sweet deal.
Most folks are drawn to agents with whom they strike a rapport.
And this is a good thing – you need honest and open communication, and someone who understands and acts on your needs.
Equally, they'll want a client who respects their experience and opinion, and is willing to be flexible to get the desired outcome.
So, what sort of behaviors should you witness from your agent if you're seeking to buy your next dream home in a competitive situation? Here are some leavers an agent can pull for you:
Seller perspective: An agent should understand what the seller really wants from the deal – the goal of net proceeds, if you like. In achieving this, your agent should work to minimize the price required to meet this goal. It's not just about money.
Quality offer: Your agent should make an offer in a professional manner. A letter of offer should make the proposed deal clear, outlining your justification for the amount and the requested contingencies.
Settlement date: Sometimes, sellers have a tight deadline, and it could be burning a hole in their pocket. Your agent should investigate this possibility. If a quick close is needed, you'll want your finances organized. Sometimes, sellers want a slower transition and you should try to accommodate this.
Earnest money: Sellers like certainty and dislike tire kickers and inauthentic approaches. So, if you're really serious about the property, your agent will push you to go beyond the standard 5% earnest money deposit, offering 10%-15%. When other buyers are in the picture, this can give you the critical advantage.
Waive inspections: This is controversial. Many agents promise additional leverage if your offer is contingency-free. It's low risk for new homes, but still a risk. I'd not recommend it for older ones. Building inspections are very important and compulsory as part of many mortgage agreements.
Negotiate repair bill: If you don't want to waive inspections, your agent may recommend a pledge such as, “we'll not ask for repairs that exceed $20,000”. Again, you need to be confident the building is new or well-maintained. Your agent should explain the risk and justify the approach before moving forward with this strategy.
Tax burden: Another approach could be to offer to pay the seller's state taxes on the deal. If you're in a competitive situation with another buyer, this offer could swing the deal.
