Everyone wants to find the best deal, particularly when purchasing a home. After all, although the market has been softening, the median sales price for all Manhattan property types (condos, co-ops, and one-to-three family homes) was still about $1.2 million in the third quarter, according to the Real Estate Board of New York (REBNY). Likewise, Brooklyn properties’ median price was $808,000. This is a lot of money and is likely the most significant investment you will make during your lifetime.
However, it would help if you resisted the urge to make the process contentious. This is particularly true if you plan on making an offer, but there is a sure way you should conduct yourself, regardless.
Remain mum on criticismsRemain mum on criticisms
It is important to remember that this is not merely an investment to the sellers. The apartment likely contains many memories, making it a very personal and emotional matter.
Some people think it is an excellent negotiating tactic to tear down the place by mentioning everything they do not like. The reality is that you have insulted the sellers and probably turned them off. In the event of multiple offers, they are more likely to accept the bid from people who appreciate their apartment, assuming you and the other party are close in price.
You do not have to praise the property effusively, but we advise acting. This means keeping any criticisms you may have, particularly regarding personal details such as the decorating, to yourself when you are touring the place. Then, once you leave the apartment, you can have private conversations with your exclusive buyer’s agent, other decision-makers (e.g., spouse, significant other), and family/friends. Now, you can divulge your honest feelings.
What if you do not like the apartment? It would help if you still refrained from criticizing the unit. Remember, beauty is in the eye of the beholder.
Beyond keeping critical thoughts to yourself, acting kindly to the sellers is always a good idea. A friendly letter to the seller can make a difference and push your offer over the top. Being kind is an excellent way to live and sets the tone for the negotiations. Remember, people want to deal with those that they like. It likely will not matter if your offer is below others, particularly by a large margin. But if it is close, it could make the difference between buying the apartment and losing out.
Act fairlyAct fairly
While advocating for your interests is a sure way to conduct business. First, you can make the process smoother by dealing openly and honestly with all concerned, including your buyer’s agent, the seller, and the agent.
If you like a property and feel you would like to take the next step and make an offer, bidding on only one property at a time is proper.
You may question why you need to do so, given that you likely will not have any future dealings with the seller. There are two excellent business reasons for doing so. First, it does not mean you are a pushover, but the seller will appreciate your fairness and honesty. Second, you may wish to deal with either your agent or the seller’s agent down the road. It would help if you left a favorable impression so they will want to conduct business with you.
Don’t keep backing out.Don’t keep backing out.
New York State’s real estate process differs notably from many other states. A buyer’s offer sheet may contain the price and only a few further pertinent details. You do not have to sign it or make a deposit. If the seller accepts your offer, either party can still legally walk away at this point without incurring a penalty.
Once the seller agrees to your offer, your attorney will represent your interests in hammering out the details. They will conduct due diligence during this time, including reviewing the co-op or condo’s financial statements and board meeting minutes, and you should have an inspection done.
Once you sign off, you are “In Contract,” legally binding to use real estate terminology. While you can back out any time before this, you do not want to do this too many times. You may have a valid reason for not completing the deal, such as an inspection that shows you need to make costly repairs or weak co-op financials.
Otherwise, you have wasted your time, your agent, the seller, and their agent. If you continually walk away, we advise asking yourself if you are emotionally and financially ready to purchase a home.
Final thoughtsFinal thoughts
Many take an aggressive approach to a real estate transaction, which we believe is counterproductive. You will find the process easier and more satisfying if you approach the seller in a friendly and businesslike manner.