Ensure the Price Is Right for MLS Listings

If you paid the sticker price for your last car and added a tip for the salesman, haggling may not be your strong suit. And the same mistake that cost you a grand when buying a vehicle could set you back tens of thousands on your next home purchase through the MLS listings. It offers excellent value for your real estate dollar, but only if you play your cards right. Come to the table with no clue what to do or ace up your sleeve, and you could end up losing your shirt.
Sure, a savvy purchaser won’t go it alone when navigating the MLS listings. Realtors are expert at securing the best possible price with the least amount of stress for their clients. That doesn’t mean, though, that you should just sit back and cross your fingers. The better informed you are on the ins and outs of negotiation, the more prepared you’ll be for the ups and downs of the home buying process.
Proper Preparation Prevents Preposterous Purchase Prices
When Sun Tzu proclaimed in The Art of War that “every battle is won before it’s ever fought”, it’s unlikely he was talking about real estate transactions. But if you think those Samurai warriors were intimidating, try going sword to sword with a seller and his skilled agent.
Most people think the pivotal point in a bargaining session is either early on or at some key moment part way through. In reality, it’s before you start. It’s a cliché that “knowledge is power”, so let’s just say that being knowledgeable will make you powerful (much better). Yet not all knowledge is created equal when it comes to the MLS listings. Buyers should focus on learning as much as they can in two critical areas:
1. The property: Just as you wouldn’t look at buying a car without checking the blue book value first (unless you’re that guy who tips the salesman), you shouldn’t go in blind when discussing MLS listings. Neighborhoods are bound to have comparable homes to the one you’re considering that sold in the past, so start your research there. If they haven’t already provided it to you, ask your agent for the sales histories of similar homes in the area. That way, if the poker-faced seller tries to inflate the asking price, you can call their bluff.
2. The person: When it comes to learning the ABC’s of negotiation, nothing is more critical than the “why”. If the vendor’s reason for selling has placed them in a time crunch, they’ll be far more motivated to close the sale quickly, putting you squarely in the driver’s seat when crunching the numbers on MLS listings. Homeowners could be under pressure for a variety of reasons.
Perhaps they are behind on the mortgage payments or need money to pay off debts. Maybe they have completed a deal to buy another property, a common occurrence these days with MLS listings. Sellers may have been transferred to another city and don’t have time to wait for the perfect offer.
Whatever the reason, it can work to your advantage. So while your realtor does some digging to find out how long the property has been on the market, you might try the direct approach of asking the owner why they’re selling. If you feel they’re being less than candid, see what you can glean from talking to the neighbors. Sure, you might feel a bit guilty doing that, but the $20,000 you shave off the price can go a long way to soothing your conscience.
Even if you’re not a master negotiator, a little preparation can save you a bundle at closing time. Otherwise, you’ll have to re-work your budget to cover the entire list price of the property, not to mention mortgage insurance, legal fees and other closing costs.
Oh, and don’t forget the tip.

Find your dream home at a dreamy price with MLS listings.

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