Top 5 Negotiating Tips for Buying a Home
If the thought of negotiating the price on a new car makes you nervous, the idea of negotiating for your new home may be simply frightening! Fortunately, you will have a confident, experienced partner in the home-buying process—your real estate agent.
Can you get the seller to lower the price if you work without representation or an agent? Perhaps. But that’s a gamble as well as a lot of work. You may negotiate a 3% price reduction on your own, while an agent working for you could have gotten you 5%. You may not negotiate for any seller-paid closing costs when the current market standard is at least half.
Also Read: The Top 4 Disadvantages of Renting
Certain negotiating tips in buying a home give you the upper hand in the process. To successfully negotiate the purchase of your new home, consider the following tips below:
Make your real estate agent work for it
One of the most important things on our list of negotiating tips in buying a home, is the use of your agent. They write real estate contracts and negotiate sales all the time! The best agents have tremendous expertise when it comes to market value in the areas where they work and in addition to their own expertise, they know and work with other agents and speak the same language. They have the knowledge and experience to help guide you through the process and negotiate a fair home price.
If you are competing with other wanna-be buyers for a property, your real estate agent's prep work and presentation of your offer can be critical to your success.
Agents at Dseaycom are the ones you can trust and the ones who will go the extra mile for you. Dseaycom is here to help you from the initial house hunting and submitting offers up to negotiating to make sure that you get that dream home.
Another tip from our list of negotiating tips in buying a home is to use the leaseback in negotiating. The process of moving into a new home can be highly stressful and labor intensive. If a seller needs a little extra time to get into their new home, buyers can offer a zero-cost rent-back for 30 to 90 days to entice the seller to accept their offer over others. Peace of mind is a valuable negotiating tactic.
This is one of the most common things that buyers like to negotiate when using negotiating tips in buying a home. Buyers have a lot of asking power, it comes to a home needing repairs and updates. When a home is out-of-date with older appliances, popcorn ceilings, cracked pool foundation and other dated problems, a buyer can ask for a lower price because of the cost to bring the home up to today’s standards.
If they want, sellers can specify that their house is being sold “as is”, letting buyers know that they are not responsible for problems and repairs. While this will scare lots of buyers away, it’s a great solution for those needing a quick sell.
Find out about the seller’s reason for selling
Gather as much information about the seller as possible. Discovering certain facts will make you more knowledgeable about the property and the seller’s circumstances, which may provide an opportunity to negotiate a lower price. Some questions you should consider asking to gather information are:
How long has the property been on the market? In almost all cases, there is more activity around a house which has just been listed in comparison to one which has been on the market for a while.
What price is the seller looking for? Why are they selling? What are their circumstances and how soon do they need to move out? Is the price negotiable? Establish if they are flexible. Are there any problems with the property?
Knowing these things will avoid any future problems and financial costs as well as aid you during the negotiation process.
Aside from using these negotiating tips in buying a home, it also helps if you treat the process like a part-time job, complete with deadlines and an extra workload. If you treat the process seriously and put in the effort, you will get a better result. Do this by being professional, responding to counteroffers in a timely manner and being fair.
In addition, you’ve got to be quick. If you find a home you want, a good agent will urge you to decide quickly, possibly writing up the offer the same day you tour the property. If you aren’t pre-approved for a loan, you can probably kiss a well-priced house goodbye in a hot market. Pre-approval letters are often good for up to 90 days, so it’s a good idea to get pre-approved early in your home search so you can act fast when you find a home you love.
When it comes to buying your home, strong negotiating skills are important to achieving your goal. If you are not confident enough that you can follow and use all of these negotiating tips in buying a home, we are here to help you. Agents at Dseaycom are well-trained in negotiating and creating successful deals for our clients. Team up with the Dseaycom team and #LetUsTakeYouHome.
At DSEAYCOM, we’re happy to answer any questions you have about buying and selling in the Alabama area. Call us now or feel free to share our contact information with someone you know that needs expert help buying or selling their home.
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