So, you finally found the perfect Parkland home only to find out it is for sale by the owner. You’ve sent your offer letter, and now you and the seller need to talk about the price and terms of the possible sale.
Negotiation is a pivotal aspect of the real estate process. For home buyers, the foundation of a successful negotiation is preparation.
In this article, we’re exploring negotiation strategies for buyers of Parkland homes for sale by owner.
Understanding FSBO (For Sale By Owner) Homes
“For Sale By Owner,” often shortened to FSBO, refers to a property that is being sold directly by the homeowner without the help of any real estate agents or brokers.
Most often, a Parkland homeowner will choose to sell their property in this manner to avoid paying real estate agent commission fees and retain as much profit from the sale as possible.
However, it is important to note that even with homes for sale by owner in Parkland, Florida, a seller is still required to pay the commission of the buyers’ agent if the accepted purchase offer was made through that agent.
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Researching the Parkland, FL Real Estate Market
Researching FSBO Parkland homes and the overall real estate market of the area is instrumental in a successful negotiation strategy.
The Parkland, FL housing market, in general, is somewhat competitive. The median sale price of a house in Parkland was $1.2M last June 2024, up 18.9% compared to last year. The median sale price per square foot is $367.
On average, residential properties in Parkland sell after 57 days on the market. The average home sells for about 4% below the list price and goes pending in around 63 days.
As of July 2024, there are 261 single-family homes for sale by their owners in Parkland. The average price of these single-family homes is $1,869,500.
Assessing the Property
If you’re a first-time home buyer, it will be helpful to know the differences between appraisals and inspections. Both are vital steps in the home buying process and play an important role in assessing the property you’re interested in.
An appraisal is a real estate professional’s independent valuation of a home’s fair market value. It determines how much a property should sell for after an evaluation of its physical structure and systems.
On the other hand, an inspection assesses the physical structure and systems of a property to establish if repairs are required. The goal of an inspector is to ensure that the house is structurally sound.
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Understanding the Seller's Perspective
A successful negotiation strategy also requires an understanding of the seller’s motivation.
Knowing the seller’s perspective can help you tailor your offer and communication to their needs and pain points.
For instance, some FSBO sellers may be facing foreclosure, divorce, inheritance, relocation, or financial difficulties that may prompt them to sell their Parkland property fast.
Other reasons for home sellers in Parkland could simply be about getting tired of managing a rental property.
Ask open-ended questions and listen carefully so you can find out their motivation and use this to your advantage.
Building Rapport with the Seller
Building rapport with the FSBO seller can help you tailor your offer and communication to their needs, show empathy for their situation, and avoid topics that might trigger negative emotions.
One way to build rapport with a seller is to do your research on their Parkland home and show them that you are interested in the details and features of their property. Aside from complimenting them on the positive aspects of their home, you can also ask them questions about its history.
Adapt to the seller’s personality and communication style. There are sellers who are analytical and data-driven, while others may be emotional and intuitive. Use clues from their words, tone, body language, and behavior.
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Effective Counteroffers
A counteroffer is an offer made in response to the buyer’s original bid. Home sellers and buyers both use this tactic to negotiate the optimal price and terms possible.
When the seller receives your offer, they can choose to accept, reject, or counter. In return, if the seller makes a counter, you can also choose to accept, reject, or counter it.
Home buyers typically create an offer below the seller’s asking price. The seller may decide to counter with a higher price than your original offer, but lower than their original asking price.
If you think that the price is still high, you may choose to counter it or walk away from the deal.
On the other hand, if you choose to consider the seller’s counteroffer, you should review the contingencies, sale timeline, and all parts of the counteroffer before you accept it.
Once the counteroffer has been accepted, you and the seller will sign a contract. As the buyer, you must secure financing, while the seller must complete any repairs stated in the agreement.
Negotiating Repairs and Improvements
If, after a home inspection, the home is found to have issues, you may request for repairs. You may opt to have all the inspection issues fixed or focus on a few important items, such as a leaky roof or exposed electrical wires.
Another option would be to adjust your purchase price to offset the cost of the needed repairs. You may also ask the seller for a closing cost credit equal to the estimated cost of repairs, then make the fixes after buying the property.
If the seller refuses to negotiate after the home inspection, you can opt to walk away and get your earnest money back from escrow.
Closing Costs and Concessions
One way to get the most out of your Parkland home purchase is through seller concessions, which are closing costs that the seller has agreed to pay. You can ask the seller to contribute to specific closing costs or pay a percentage of the total closing costs.
The seller may be able to cover part or all of these closing costs:
- Property taxes
- Title insurance
- Loan origination fees
- Inspection fees
- Recording fees
- Appraisal fee
- Attorney’s fees
- Mortgage points
Finalizing the Deal
Once your Parkland home purchase is close to completion, one more thing you might need to negotiate with the seller is the date you take possession of the property.
The date of taking possession has a significant impact on the buyer and the seller, so both parties will have to negotiate, considering the constraints and obligations of each party to arrive at the ideal compromise.
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Using a Real Estate Agent
It is always in a Parkland home buyer’s best interest to work with a real estate agent, especially when purchasing a FSBO property, because you don’t know the extent of the homeowner’s knowledge about real estate.
Hiring a buyer’s agent will ensure that your home purchase is done properly and that you are indeed paying a fair price for the property.
Note: This image may include elements generated by artificial intelligence (AI).
Conclusion
Buying a FSBO home may be a bit challenging, especially if you are a first time home buyer, and preparing yourself for negotiations can help ensure that you get your Parkland dream house.
If you need help with your home purchase, please feel free to give me a call at 800-544-7348 or send me an email at portia@cirifl.com to schedule an appointment.
Frequently Asked Questions
How can I determine the fair market value of an FSBO property?
Hire a professional appraiser to assess the property’s current value.
Do I need a real estate agent to buy a FSBO home?
No, you don’t. However, not having a real estate agent to guide you through your FSBO home purchase may lead to certain risks, such as not getting the best price for your home and legal issues.
What should I include in my initial offer?
A buyer’s written offer should include the address and description of the property, earnest money, contingencies, clear title stipulation, closing cost details, and the date and time of the offer’s expiration and projected closing date.
