When looking to buy a home, you can hire a real estate agent to do the bargaining on your behalf. Still, you should also understand what opportunities you have for a good negotiation. Nobody likes to pay more than they have to, so you mustn’t just leave everything on an agent’s shoulders as they may not be perfectly competent or willing to invest as much time as you for this deal.
Let’s just say there is a house for sale, and you like it. You need to proceed cautiously, knowing both what to do and what not to, keeping in mind that the seller may reject your offer based on any number of reasons. For a confident buyer, you should have the knowledge of the primary do’s and don’ts of negotiation and how to go about, as mentioned below :
If, on your offer, you get a counteroffer from the seller, do not take more than 24 hours to respond with whatever you want to say. This demonstrates the seller that you are serious in buying and also reduces the chances of someone else getting that house.
The most crucial part of any successful negotiation involves the other party feeling the elasticity in the deal. This helps in demonstrating your earnest interest and raises your chances of getting a concession.
You have to take into consideration the average prices for other homes for sale in the area, the actual condition of the house & neighborhood, and factor in the local market situation before diving into a negotiation. Thorough research will always make you more confident and may benefit you greatly in the negotiation. Use your home inspection information to bargain your price down.
Good negotiators always know what they need to walk away with at the end, and they also know their leverage points before plunging into a dialogue with the seller.
Here is a list of a few things that you can maneuver in your favor during an intercession :
– Earnest Money Deposit (EMD) is the sum that you pay to the seller along with the offer you submit for the house.
– Home Warranty is the cost payable by the seller in case a major home appliance like heating or air conditioning breaks down within a certain period.
– Home Inspection is the right of a buyer, and if done properly, it may reveal some house repairs that the seller may be keeping from you.
– Closing costs are fees to be paid to the lender for taxes on settling a mortgage.
– Possession Date is the actual date when the seller has to hand over the property to the buyer.
– Mortgage Points Deduction is the act of paying points on the mortgage as a tax-deductible expense
Always submit a realistic first offer so that the seller takes you to be a reliable and serious buyer. Engage positively in the discussion by staying respectful and reasonable to get the best possible purchase price. Though the price is the primary factor in deciding the sale, sometimes sellers also accept lower offers if they feel that a buyer is more qualified.