Finding the home of your dreams can be overwhelming to begin with, but once you found that home the real work begins. Making an offer and negotiating a price can be mindboggling. There’s a lot of work that goes into making an offer and getting what you want from the seller. It is best to know how things work prior to starting the process.
One aspect that is very important is negotiating the price. It is a delicate process, you can lose the home of your dreams by over or under-negotiating with the seller.
Here are five tips that can help you in the home buying process.
As Always, Do the Research First
It’s always a good idea to find out what housing prices are in your area. Trying to negotiate a price without that information can make or break a deal for you. In the cyber age, this is easier done than said. True, you can log onto real estate websites like Zillow or Realtor.com to get estimates on sale prices in your area. Your agent can get even more detailed information as well.
Negotiate After Home Inspection
It’s always best to wait until after the home inspection before starting a negotiation. Even new construction can have some mechanical issues that the current owner should fix prior to the closing. This can save you some heartache in the long run. You can either ask the seller to fix any issues prior to closing or have the repairs included as concessions in the final deal.
Don’t be Quick, But Don’t be Too Slow
Have you ever been told, don’t rush to judgement or don’t be impulsive? The same rings true with real estate negotiations. You don’t want to seem too eager and jump at a property – you could lose your negotiation edge if the seller can sense how badly you want the property. At the same time you don’t want to drag your feet either especially in a hot market. You could wait yourself out of your dream house.
It’s best to keep the seller engaged, showing that you are interested and financial able to buy the property, but don’t show too much excitement.
Get to Know the Seller
Not saying you have to be the seller’s best friend, but it is best to know some things about the seller. It is always good to know why he or she is selling their house. Are they in a rush to sell? Are they just downsizing and do not need to sell right away? Ask a lot of questions, whether it is to your agent or to the seller directly, the more you can find out, the better your chances may be in negotiating a good deal for all involved.
Take Professional Help
No one says you can’t go it alone, but having professional help from a really good and knowledgeable agent is truly beneficial. Let the agent take all of your wants, needs and can live with outs to the table for you and negotiate on your behalf. Yes, it will be an added cost to hire a great agent, but the money they can save you with their real estate negotiating skills, will be far more than their fee. Also a great agent can help you navigate the legal aspects of buying a house as well.
All transactions are different but these are some keys to remember in any negotiation.