Jonson Tran Nguyen
Broker Associate - Realtor
168 Las Tunas Drive, #105
Arcadia, CA 91007
Negotiating the Best Price for a Home
It takes a strong understanding of the home-buying process to be good at negotiating. Be sure you have it down before you make any offers on homes
Here is some information that negotiators use:
CMAs — Comparable market analyses
Once you’ve found a home you want to buy, the first step in negotiation is to assess the fair value. CMAs show what similar properties in the area have sold for. Your real estate agent will have access to CMAs and can share them with you.
Generally, CMAs list houses in a particular location that are currently on the market, have sales pending, have expired from the market or have sold.
It is the "sold" properties you need to look at because the list price and the offer aren’t necessarily the best indicators of what the house will sell for. There can be a big discrepancy between the two figures.
The CMA often gives you general information about the houses being compared: number of bedrooms and baths, square footage, the listing price and the sold price. Make sure you focus on houses similar to the one you’ve selected — both in description and location. The more recent the data, the more accurate the information will be.
Once you have the CMA, drive by all of the properties listed in the sold column. Condition has a lot to do with the ultimate selling price of a house. Does the home in which you’re interested shine above or fall below those sold? Make a realistic comparison of condition, then adjust your thinking up or down according to what you see. A knowledgeable real estate agent can help you with this process, they will have the ability to analyze and make recommendations on the amount to offer.
Does the house you’ve chosen have more or fewer amenities than comparable homes? Although amenities won’t affect the value as much as location or condition, they can be a factor.
A good negotiator gathers as much information as possible on the house and the sellers. The owner’s reason for selling is at the top of the list. Does he/she have to sell? Want to sell? Just testing the market to see what they can get for their property? If your agent representing you in the transaction is a buyer’s agent, they can try to secure this information for you. If you’re working with an agent representing the seller, they typically can’t disclose this information without the seller’s consent.
Great negotiators always prepare themselves. The most important factor is your frame of mind. Never let emotions override common sense during negotiations. Set a realistic limit and stick to it. If the price isn’t to your liking or is outside your budget, walk away.
In addition to your emotional frame of mind, your finances should be in order. An offer carries more weight if there are no dangling financial problems and if you’re prequalified for a mortgage.
Make a reasonable offer. Nothing turns a seller off more than a low-ball offer on a house that is fairly priced. Often, negotiations will stop, rarely to be revived again.
If you have any questions or need more information regarding real estate please feel free to contact me. I will be able to help you with all your real estate needs.
I specialize in the cities of Alhambra, Monterey Park, San Gabriel, Rosemead, Temple City, Arcadia, Pasadena, South Pasadena, San Marino, El Monte, Irwindale, Monrovia, Bradbury, Sierra Madre, Duarte, Altadena, La Puente, Covina, Azusa, La Verne, San Dimas, Montclair, Claremont, Upland, Rancho Cucamonga, Hacienda Heights, Rowland Heights, West Covina, Diamond Bar, Walnut, Chino Hills, and surrounding areas.