Things Homebuyers Should Never Say

Buying a home is a very emotional process and can lead some to say more or less than what is needed to successfully negotiate the best deal.

I am always scouring the web for real estate news and articles to not only stay on top of the real estate market but also to see what consumers such as you and I are being told to be truths but are in fact false. The most recent was an article on Yahoo finance which made note of 4 things homebuyers should never say when negotiating a home purchase. Although there are things that shouldn’t be said, these are not and I’ll explain why.

The article names the following things homebuyers should not say during negotiations:

1. “I’m not pre-approved”

Reason given: “Real estate agents and home sellers prefer strong buying candidates who are likely to make good on their purchase offer.”
Why this doesn’t apply: In today’s real estate market, there is no offer without a pre-approval letter.

2. “I’m pre-approved for this exact amount”

Reason given: “…you can squander goodwill and compromise your negotiating position by including a pre-approval letter for more than your offer.”
Why this isn’t true: I have, on many occasions, submitted offers with pre-approvals as high as $100,000 more than the offer amount. Aside from a bank statement reflecting plenty of assets, nothing gives sellers more confidence than someone who is approved to buy homes well above their range. The opposite may actually hinder your ability since the seller may be concerned you are pushing the limits of your pre-approval and the deal could fall apart if you decided to buy a pack of gum with a credit card. The market dictates what home prices are, not what a buyer is pre-approved for or how much they have in the bank.

3. “I can’t live without this home”

Reason given: “Buyers who say they “must” have a certain home can have a tougher time being objective.”
Why this may not apply: We are all willing to pay a premium for the things we love. Think about that last Starbucks you had, not exactly cheap but worth it to you, right? Although our emotions can get the best of us at times, when it comes to real estate, we do have a safety net. Well, two if you count your real estate agent who should keep you grounded. The appraisal gives you peace of mind you didn’t go overboard with your offer.

4. “This is my forever home”

Reason given: “Resale should always be a consideration regardless of your best intentions”
Why this isn’t true: As much as I agree with the notion that we should not believe all things to be permanent, saying this may actually help you in the offer. Some sellers (not all) actually want to have a connection with their homebuyer. Letting the sellers know you love their home as much as they do can sometimes influence their decision in your favor.

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Here’s One Thing Homebuyers Really Should Never Say:

“We offered this because it needs a lot of work.”

Why you shoudn’t: In other words: We want your home but it’s ugly. Trying to justify your offer is never a good idea. Sellers can feel hurt and insulted, making it unlikely your offer will stand a chance.

Source: “4 things homebuyers should never say” Yahoo Finance (May 19, 2014)