Negotiating Tips to Get the Right Price on Your Dream Home
Whether you’re looking to purchase your first home or your fifth home, you instinctively want to get the most for your money. In order to make sure that the house of your dreams comes with the right price tag, it’s important to go into the negotiation process well-informed.
Of course, the price of every home is at least somewhat negotiable, but what really matters is your negotiation style and plan of attack. By incorporating the following strategies into your home search, you’ll have a much better chance of landing the perfect deal.
Enter the home search process financially prepared. In other words, know your finances inside and out before you even think about calling a real estate professional. Getting yourself pre-approved for a mortgage loan in the amount you’re ultimately willing to pay. Negotiations will sway in your direction if you have a pre-approval in your hand because the sellers know there is a low chance that the deal will fall through.
Do your research. Have a solid idea regarding properties in the surrounding area and how much they have recently sold for. Be sure to compare homes that are similar in size, age and amenities to the home(s) you’re most interested in. Tap your realtor’s brain for more information about nearby “comps” (properties that are comparable).
Remain as unemotional as possible. As soon as the seller and/or their agent picks up on the fact that you’ve become emotionally attached to a property, they’ll know they have the negotiating edge. Rather than getting too attached to any home, think of the process in business terms until you know you’ve nailed down the price you want.
Use your real estate agent (it’s why you hired him)! Sometimes it can be tempting to communicate directly with a home’s sellers – especially if you happen to know them in any capacity. Although it is much more time consuming, ask any questions and make all requests through your agent to the seller’s agent. This will further help you to keep emotion out of the process, and will keep misunderstandings to a minimum.
Be ready to move quickly. You want to get the best deal possible, but if you wait too long to make an offer, you’ll see properties whisked right out from under you. Competitive markets mean that you have to be willing to make your best offer straight away. If the seller doesn’t want to accept your best offer, you haven’t had time to get too attached and you can move on to another listed home that you like.
Make it worth their while. If you are able to pay in cash, you’ll knock weeks off the waiting period for the sellers. Not having to wait for you to be approved for a mortgage is a big plus for some people – especially those who have already purchased another home and need things to speed along. If you can’t pay in cash, have that mortgage pre-approval letter handy. A personal statement from your mortgage broker and the option of a quick close are two extra ways to convince the seller that your offer is worth considering.