Since the real estate market downturn, pundits and real estate agents alike have been encouraging buyers who are able to buy real estate right now. However, getting the best deal in the current economic environment requires a plan, otherwise you may not be able to maximize your negotiation potential. To negotiate the best possible deal when purchasing a piece of Chicago real estate, I suggest you follow this strategy:
- Get pre-approved (in writing) for a mortgage prior to looking for a property.
- Buying a home worth $500,000 or below: Put a down payment of 20 percent or more on the property. This puts you in very strong negotiating position.
- Buying a home worth $600,000 or above: state in the contract that you will put down a 25 to 30 percent down payment and will close in 30 days. This certainly will perk up the seller’s interest and you might be able to negotiate a better price.
- Buy a luxury property that needs work, in addition to the 25 to 30 percent down payment. And if you close fast you are bound to get a deal that hasn’t been around in the last two to three years.
- Remember that cash is king in this economic climate. If you are fortunate enough to be in this position and close in 10 to 15 days you will be surprised how fast sellers are willing to come around to your bottom line price.
If you consider these tips when purchasing a luxury Chicago home or Chicago condo, you will be pleased with the results.
For more information on how to negotiate and get a deal, please contact real estate agent Sheldon Salnick at (312) 498-5080 or [email protected]
