Don’t get caught short when you’re inspecting a home. Here’s how to handle a conversation with a real estate agent.
#Option 1 or Option 2 – Why …
# What’s your budget?
- “My pre-approval is…”
- “I don’t share my financial information.”
Why? Revealing your maximum budget lets the selling agent know how high you’re able to go.
# What do you think of the property?
- “I love it!”
- “It’s interesting. I’m looking at other places and will think about it.”
Why? It’s better to be aloof. You want the flexibility to highlight the flaws of a property during negotiation.
# What else have you looked at?
- “I’ve looked at 10 Mediati St.”
- “A couple of places in the area. We’re getting a sense of what’s available.”
Why? Agents use other properties to understand your price range and interest level.
# Have you bid on any other properties?
- “Yes, we bid for 20 Glenrowen St but lost.”
- “We’re new to the market and haven’t bid on anything yet.”
Why? Previous bids reveal your maximum budget.
# What do you think this will sell for?
- “Hmm.. well over the guide price – probably around $850,000.”
- “Is there a guide?” or “I’ll need to look at comparative sales first.”
Why? Never give a price when asked this question. If you do, you’ll tell the agent that this is (A) within your budget and (B) how savvy you are at negotiation.
# If we got an offer around the $xx range, would you want to be informed of the negotiation before the sale?
- Anything that confirms or denies your position.
- “I’m not sure. We like the property but I’ll need to look at comparative sales first.”
Why? This is a very common tactic. Their goal is to understand your budget and convey that to their seller. If you confirm you’re interested at a specific price, you’ve confirmed your willingness to pay at least that.
# Do you have any concerns or questions about the property that you would like me to address?
- “I hate the kitchen.”
- “Not at the moment. If I do think of something, we’ll be in touch.”
Why? Agents are trying to understand your position. By indicating any issues in the property, they know what you will target during negotiations.
# What is your timeline for buying a property?
- “I hate renting and my lease is up soon.”
- “We can move quickly but we just want to find a good place.”
Why? The worst position to be in as a buyer or a seller is time-crunched. It forces you to make sacrifices and compromises unnecessarily.
Heading to an inspection? Keep this guide handy.
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