The suburbs of Houston are known for being home to some of the most beautiful luxury properties, complete with tranquil neighborhoods, spacious yards, and access to excellent public and private schools. These breathtaking homes in safe, quiet towns can easily tempt buyers to ignore their budget limitations and bid the full asking price or more, even if that means spending more on a home than it’s actually worth.
Avoid overspending on your luxury home purchase by learning how to strategically negotiate with sellers.
6 Negotiating Tips Every Luxury Homebuyer In Houston Needs To Know
1. Put aside your emotions and trust your realtor
One of the biggest advantages of buying a luxury home with a realtor is the ability to consult with an objective party before making an offer. Most buyers who overpay for their homes do so because they became emotionally attached to the property and bid too high as a result. An experienced realtor will help you avoid making this mistake, and instead guide you towards placing a realistic bid.
Remember, you are working with a professional for a reason; don’t be afraid to trust your realtor’s judgement. The lack of emotional involvement is one of your realtor’s biggest strengths, and should not be confused with a lack of caring. The best realtors will remain poised, calm, and collected in a stressful situation, in order to help you make the right decision. Don’t be afraid to cut through the smoke and listen carefully to the advice your realtor provides.
2. Understand the seller’s priorities
Some sellers are simply in a rush to close the deal, and while this may not be the case with every home you look at, it never hurts to inquire about the seller’s reason for moving. Events such as the death of a loved one, changes in sellers’ financial situations, divorce, and career opportunities requiring relocation are all examples of reasons why sellers may be motivated to close on a deal as soon as possible.
In these types of situations, showing the seller you’re able to close quickly can help persuade him or her into accepting an offer below asking price, so make sure you’re ready to act even before you start viewing homes for sale.
3. Leverage the estimated cost of repair work the home needs
One of the most effective ways to negotiate with a seller is to identify repairs the home may require and determine a rough estimate of how much the work will cost. Carefully look over the entire property yourself, even before hiring an inspector, to lessen the chances of missing any significant problems in the home that will require work.
Depending on the scope of the repairs that may need to be made, the seller may choose to either cover the cost themselves or accept an offer below asking price due to the home’s less-than-perfect condition.
4. Avoid making a low-ball offer
Despite how well you may be able to put your own emotions aside, there’s no way to control the seller’s response if you make a low-ball offer. Rather than risking upsetting the seller with a potentially insulting offer, work with your realtor to determine if the asking price does in fact reflect the home’s value. Your realtor should be able to quickly gather information about the local real estate market and help you use this data to place an appropriate bid.
5. Put a time limit on your offer
Let the seller know you’re serious by providing a deadline for which your offer can be either accepted or rejected. Typically, the time limit should be between 24 and 48 hours from the time you make your offer in order to encourage quick decision-making on the seller’s end. By setting an expiration date for your offer, you’re also proving that you have no emotional attachment to the home and are prepared to explore other options if the seller can’t meet your deadline.
6. Walk away if necessary
If you can’t come to an agreement with the seller, be willing to walk away. Not only will your realtor likely be able to find a more suitable property for you, but if the seller is interested in your offer at all, this last-resort tactic could provide the final push needed for your bid to be accepted. You may be surprised by just how effective this strategy is when used correctly.
Interested in purchasing a luxury home near Houston?
I can help you find a home that fits your needs and your budget, all while taking the guesswork out of a complex real estate transaction. As a Houston resident myself for 27 years, I’ll help you understand the current market and guide you down the path to homeownership. Please contact me today if you’re thinking of buying a luxury property in the Tanglewood, Uptown, Memorial, or Galleria neighborhood!