Don’t bid too low. This is a trap. Sellers expect to receive lowball offers. Don’t be afraid to start with a low number, and negotiate from there. Again, this is why it is so important to know the market yourself if you can, so that you don’t have to look to your agent for these things.
Put in an offer now, or you’ll lose it. This, is also not great advice. The agent is trying to create fear in you quickly so that you put in an offer, fast, that is likely over your budget. Of course, sometimes
you really do not to move quickly, and if you are positive there is another seller offering more, you may need to increase your budget upfront. But when the house has been on the market for a long time, and hasn’t been moving; there is no need for immediate action.
Someone else wants it right now. This lie is told by the selling agent. Smart buying agents are more willing to play along because it increas
es the chances of their buyer putting an offer in right away. Again, this is why you need to be willing to walk away. This is also done with rental properties too.
You want to buy the house at the lowest price, the seller wants to sell the house to you at the highest price and your agent wants you to buy the house and doesn’t care at all what price you pay because they just want the deal finished. Since paying a higher price will get the deal done quicker, a lot of agents will encourage you to bid higher which basically means that you are negotiating against them as well as the seller.
“Meet them in-between.” This sounds quite reasonable at first. However, the fact is that the asking price of the house and your first bid are very arbitrary numbers and splitting the difference between the two might end up in a price that is not market value.
“Are you willing to lose this house for $1,500?” This is a tough one, because on one hand, it really does seem silly to lose a house over that. What you agent should be doing, is asking the sellers agent, do you want to lose this deal over 1,500?
The bottom line is this…the more you educate yourself about the real estate market you are looking in and how real estate agents operate, the better off you will be when buying a house. Real estate agents are useful, but remember that they only get paid when the house is sold, so they have no incentive, at a certain point, to care about your welfare over theirs.