Does What The Seller Owe Important In Negotiating On A House?

What does the seller owe on the house? This is a question a lot of Real Estate agents do not think to ask. Yes, obviously if it is a short sale then we know they owe more than the asking price of the house. But what if it is not? Does it matter when you are about to put an offer in on a house? It can make a huge difference in whether you put an offer in and how much of an offer you put in. I personally look at the tax records to see how long the seller has owned the house for. That can give me a good gauge of the potential equity position they are in. Also, in north Carolina the tax records sheet shows not only what they paid for the house and when; but it also shows how much of a mortgage they took out and when. Even if they refinance it comes up.... But why is this important when you are negotiating on a house. Well people sell homes for a variety of reasons. The most common is a life style change. It could have been a first home that they bought and they out grew it. they could be wanting to downsize because all of their children are grown and out of the house. They may be relocating to another area or want to be closer to their job. The list can go on and on as to the reasons why people sell their homes. But one variable is always going to remain the same. They are going to want to get X amount fo dollars out of the sale of the house. It could be so they have a down payment on their next home or that they just want to walk away from the house at least breaking even. I have been in both situations in the past on the selling and buying end of transactions. It has made a difference when we placed an offer in on a house. Knowing the seller was just trying to walk away from the mortgage even made us have to adjust our offer and strategically come up with a price that would work for both sides. (Sometimes you just have to walk away when the numbers do not seem to make sense). So, you have found the house you want to own and are ready to put an offer in on the house. Make sure you have some history on the house...How long they have owned it for and what they paid for the house. It can help you in presenting your offer and negotiating the best possible deal. Dave dicecco Realtor/Broker www.davedicecco.com