When you’re in the market for a new home, there’s nothing quite like the search for the perfect property. It’s exciting, addicting, and fun. But, once you finally settle on a property, that’s when the real work begins. This is when the negotiations phase starts, and for most, this is the most frustrating and stressful part of the home buying process. But it doesn’t have to be so worrisome.
Here are nine tips that you can use that will help make your home buying negotiations go smoother.
Get Your Finances in Order
You want to be on the strongest ground possible when you’re negotiating for a home. So before you even start making offers, you will want to get your finances in order so your mortgage lender won’t have any misgivings about your loan before you close the deal.
Place an Offer Based on Home Value, Not List Price
A property’s list price is the price the owner is asking for. This is almost always higher than what the home is actually valued at. Find out the actual value for the home, and then base your offer on that amount.
Be Ready to Move
If you’re shopping in a competitive market, then make your first offer your best offer, or you could miss out because homes don’t last long once they hit the market. Therefore, you want to be ready to move quickly. If you’re anticipating a bidding war for a home, then let the other party bid first so you know what number you have to beat.
When you’re heading into negotiations, it’s normal for most people to start talking. But you’ll want to avoid this temptation and instead, try listening. If the seller has a counteroffer, listening will help you identify their reasoning and their unique situation. This information will help you and your real estate broker to determine your next move.
Learn as Much About the Seller as Possible
If you learn that you are going to be entering into negotiations with the seller, ask your Realtor for as much information about them as possible. For instance, why are they selling? Are they moving for a particular reason, like for a new job? Is the seller in financial trouble and trying to avoid a foreclosure? Any information you can gain about the seller and their reason for selling will strengthen your position at the table.
Check Public Records on the Property
Doing a public records search on the owners and the property can provide you with details like whether or not the home is headed to foreclosure or if the owners have recently filed for divorce. Use a resource like Homes.com to find out when the property was last on the market and how much it sold for.
Don’t Expect to Win Every Battle
In every negotiation there is give and take. You’ll win some, but don’t expect to win them all. Pick the things that are most important to you and hold steady on them while being a little more flexible elsewhere. Be ready and prepared to compromise and your negotiations process will be friendlier and smoother.
Keep Your Contingency List as Short as Possible
The fewer contingencies you have, the closer you will be to getting the house you want. For instance, if you can afford a higher down payment and that’s what’s needed to get the house, then do it. Or, if the homeowner wants you to change the closing date in order to accommodate their schedule, then do it as long as it doesn’t affect your own schedule. The more flexible you are willing to be, the better your chances will be of holding the winning the bid.
Send a Personal Letter With Your Offer
In many cases, writing a personal letter to the seller and sending it in with your offer will help put a face and story to the process. So many home buying negotiations are sterile, with the two parties never even meeting each other. By adding a personal touch to the process, you’ll be connecting with the seller on a different, more personal level. And, when the seller feels as if they “know” the buyer, this can make all the difference in the home buying negotiations.
If you’re looking to buy or sell a home, please reach out to me. I am here to help with any questions you have. Call my cell phone (541) 390-0595 or email me at firstname.lastname@example.org. You can also explore my website at www.selenamcneill.com
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