Buying a home can be rewarding, particularly when you found the sweetest deal. This is even more important as a recent US survey suggests an uptick in property prices, making it vital to learn how to land the best price possible. That is where your negotiating prowess can make the difference between spending more or paying the lowest price. If you’re unsure how to achieve the latter, continue reading to learn four tips for negotiating the price of your next house purchase.
- Gather as much information as possible
Before you jump into the housing market, it is crucial to arm yourself with all the necessary information about the type of property you are gunning for. You can talk to your real estate professional and get your hands on a comparative market analysis. This report will provide valuable information on what prices homes around the block went for, how quickly they were sold, and how close the final deal was to the initial asking price. After, figure out if you’re in a buyer’s or seller’s market. In the seller’s market, where homes are like hotcakes, you might have less sway at the negotiation table. Conversely, in a buyer’s market, where homes are more plentiful than eager buyers, sellers might throw in sweeteners to close deals.
- Know your seller
When you’re gearing up to negotiate on the house you want to buy, it’s vital to size up those selling the property, assessing what’s driving them and what their deal is. Knowing their motivations is like having them in your pocket during negotiations. If they’re super eager to seal the deal, you’ve got some extra leverage. On the flip side, if they’re facing unique challenges, like still hanging onto their current property, you can tweak your offer to fit the bill. For instance, if a buyer’s stuck with their old place, throwing in a more extended closing period can be the ace up your sleeves. It’s all about negotiation with a plan and style.
- Negotiate post-inspection
Having a property inspection can help point you to a few hitches, which can be valuable when negotiating the price of the property. For example, you can leverage a few items or issues that require fixing to bargain the price. Fixing major issues such as sketchy wiring or leaking roofs can be costly, and you want to factor those into the final price. If you fancy a sweet closing cost credit, ask the seller to foot a percentage of your closing costs, matching the repair estimate. Negotiating after the inspection is like haggling with a safety net.
- Expect to compromise
Achieving your dream price can be elusive, making it essential to sometimes consider compromise. Get ready to hash things out and find common ground. Team up with your agent, align on your expectations, and know that you’ll not always get what you want. Remember also that negotiations take time, and you may have to go over certain aspects over and over again. Think of it as part of the deal, and remember, not every negotiation ends in a sold sign.