Home Buyers- Negotiation Tips to Get the Best Deal

When it comes to buying a home, your negotiation smarts can go along way to protecting your cash & best interests. Here are some tips to help you get the best deal.

1. Set your priorities early…This is the most critical!

Decide on your bottom and top-line prices and what your biggest priorities are before the negotiation begins.

Knowing what’s really important early on is critical to getting a great deal. This will help you when negotiation gets too emotional & you can fall back on your priorities you’ve already set up. Ultimately, the bar for whether your negotiation is successful is determined by what the home and contract terms are worth to you.

2. Know your local environment

The best negotiators are the most informed. Ask your agent to provide you data on

* Recent sold prices for similar homes

* Average difference between asking and sold price

* Average days on market for similar properties

3.  Get the inside scoop

Don’t make a blind offer. Make sure you ask your agent to explain market data and how the numbers relate to your transaction. In addition, your agent should ask about valuable transaction specifics that can strengthen your position, like whether or not the sellers need to move quickly.

4. Secure your financing

Too often transactions fall through at financing. Work in advance to make sure your deal doesn’t die at closing For buyers this means working with your agent and mortgage broker to secure back-up financing in case things go awry with your first loan. Letting the seller know you have done this may allow the seller to feel more comfortable on other concessions knowing your financing is secure.

5. Manage your own mindset

Remember, when negotiation, the least emotional parties usually have the most power. The more attached you are to a particular home, price point, or set of terms, the more likely you are to panic or cave in on important points, like price, unnecessarily.

Lean on (and listen to:) your agent for objective support throughout the transaction. It’s their job to ensure you’re making the best business and life decision.

6. Learn (and accept) the “negotiables”

To manage stamina during the negotiation, find out early what is and isn’t within each party’s control.

Your agent can help you stay clear on this and avoid the emotional exhaustion that results from trying to haggle in areas that aren’t really negotiable (e.g., the bank’s bottom line, cosmetic repairs on most foreclosures, etc.)

7. Minimize time pressures

When buying or selling a home, moving deadlines can cost you thousands of dollars and cause you to make needless compromises because your’re in a rush.

When buying or selling, here are a few ways to buy your self time:

* Plan and search early when possible,

* Locate temporary rentals, and

* Develop a plan-B for closing day in case you encounter last-minute hurdles

8. Act quickly- not impulsively

When you find ‘your’ place, make an offer. When you get a counter offer or response, respond to it. In real estate, time is always of the essence, and prolonged hesitation often results in lost opportunities.

There’s nothing wrong with sleeping on a decision overnight, if the ‘right’ move is unclear. But keep in mind, there are competing buyers and changing interest rates lurking, which can change the whole bargaining dynamic at any minute.

We are here to guide you through this!