Page 23 - How To Buy A Home with Cat Stevens RVG

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Making An Offer (Continued)

You could pay below the listed price if…

■ The sellers are motivated financially due to a divorce, job loss, a forced relocation, or if they need the house
sale money quickly.
■ A bank owns the house because the people who used to live there didn’t pay their mortgage and the bank
took the house from them. The bank wants to get the money that they are owed and could sell the house to
you at less than they have it listed for, just to get rid of it.
■ You are paying cash for the house and can prove you have the necessary funds to purchase it. This type of
offer would be attractive to a seller because it is not contingent upon loan approval.
■ The sellers have already moved out and bought another house, and now they are paying two mortgages
every month.
■ The sellers know that they should have put in new carpet, paint, and a new roof, but they didn’t have the
money to do it when they put their house on the market, so they are willing to give you a “carpet allowance”
for the carpet they should have replaced. See how this works:

Example of a “Carpet Allowance”

House listed at $100,000.
Sellers may have $6,800 in normal seller closing costs.
Sellers purchased the house for $80,000 several years ago and expect appreciation.
It has been on the market for 3 months, and it needs new carpet.
One down the street sold for $99,000 with new carpet.
Buyers offer them $95,000.
Sellers counter-offer $97,000. Buyer accepts.
This is fair market value. Everybody wins.

■ The house is worth the asking price. It’s OK to pay the asking price or more when the house is worth what the
sellers are asking based on the data you reviewed.
■ The house is a new construction build. Builders don’t negotiate on price unless you want them to take out
some of the options.
■ Many sellers who have lived in a property for over 20 years feel emotionally attached to it and rarely accept
less than list price. Many times they feel insulted by low offers because of their memories in the house.
■ The sellers have always done business as, “This is the price, take it or leave it.” It is hard to change a mindset
like this. But if their “bottom line” is well below the price of other homes in the neighborhood, it’s still a good
buy for you.

Keller Williams Realty Consultants - How to Buy a Home in Southern Indiana 21