MOBILE:   FAX:
 Welcome to the RealEstateofColorado.com Blog

2012-01-18 21:32:41
Why Pay Full Price?

No one wants to pay more than its value regardless of the product. When you buy bananas for 49 cents a pound at one store and see them for 39 cents a pound at another store, it's not the ten cent difference as much as it is about overpaying.

It seems like the natural way to start the negotiation process is to offer less than the asking price for the home. However, instead of the price, a buyer could negotiate condition, timing or terms. A few thousand dollars off the price may not make much difference in the monthly payments but it might make a big difference if it was negotiated in one of the other areas.

A buyer who only has enough available funds for down payment and closing costs will have to live in a home exactly the way it is for some time. They may not be able to make the changes that would really make it feel like home until they've saved more money.

Let's say you found a home that needed $5,000 worth of improvements and the seller would lower the price by that amount. Financing those improvements with a separate bank loan will result in higher payments due to a higher interest rate and shorter term than your mortgage.

Offering full price and asking the seller to make the improvements will result in lower monthly payments based on today's low mortgage rates and 30 year term. Another alternative is to negotiate with the seller to pay your closing costs so you'd have the cash to make the improvements.

Paying full price may cause the seller to consider concessions regarding condition or terms which can be balanced to affect the value of the property. Buyers can and should negotiate to acquire the home that meets their needs at the lowest possible cost of housing.

 
Blog Archive
2014-02-03 08:51:39
Find a Better Return

2014-02-01 09:26:32
Why Borrowers Pay Different Rates

2014-02-01 09:23:51
Refinance to Remove a Person

2014-02-01 09:18:46
What Kind Of Showing Was It?

2014-02-01 09:17:26
What Can You Expect?

2014-02-01 09:15:56
Interviewing a Mover

2014-02-01 09:13:54
Personal Finance Review

2013-11-16 14:02:34
'Please Take Our Offer'

2013-11-16 13:51:09
Retirement Without a Mortgage

2013-11-16 13:49:42
If I'd Known

2013-11-16 13:37:54
Who's Paying Your Mortgage

2013-11-04 12:30:25
Breathe Easy

2013-11-04 12:27:14
Will the 'Good Life' Be Ready When You Are?

2013-11-04 12:24:31
What's It Worth?

2013-11-04 12:19:54
Renters Want to Buy

2013-11-04 12:18:44
Low Inventory = Multiple Offers

2013-11-04 12:15:17
Debt Relief = Income

2013-11-04 11:52:44
FHA & VA Assumption

2013-11-04 11:42:03
When Rates Go Up

2013-11-04 11:21:49
It Can't Hurt to Wait, Can It?

2013-11-04 11:19:00
Where Is It Invested?

2013-11-04 10:48:02
Real Estate 411

2013-11-04 10:46:22
All Dollars Not Equal

2013-10-21 13:47:26
Get Regular Check-ups

2013-10-21 13:43:53
A Home Is More Than an Address

Click here to see ALL articles.


Comment on this Article

Your Name:
Your Email:
Comments:
Verify:  Please enter the numbers shown to help eliminate spam.