If you are in the market to buy a home, you certainly want to find the right home at the right price on the best terms. To accomplish that you will need to know how to negotiate. To be the best negotiator possible, you will need a thorough understanding of the housing market at the neighborhood level.
In today’s market, there are fewer homes for sale than buyers willing to purchase those homes. With a short supply, it means the market is a seller’s market, and there is a good chance you will need to compete with other buyers to seal the deal on offer. Knowing what terms to negotiate and how to negotiate those terms can be your best tool for closing on the home you want.
Take a look at these tips for negotiating a deal on a home.
- Always have pre-approval ready before you even start looking for a home. Most sellers will immediately turn down an offer from a buyer who is not pre-approved. Pre-approval also gives you a better idea of what you can afford so you are not wasting your time. While you could look for a rent-to-own home, you may want to buy now if you are pre-approved.
- Do not be too worried about small differences in pricing. A $5000 price different roughly translates to $20 a month. Do not let your desire to get the cheapest deal rob you of the chance to own the home you want.
- Always try to make an offer based on the value of the house and not the asking price. Look at the sale prices of homes in the area and go from there. If the home is priced under or at the current market value for that neighborhood, then you are unlikely to get a lower price. On the other hand, if the house is priced above the current market rate and has been on the market for an extended period, you might be able to offer at market value and get a deal.
- Be ready to make an offer if you see a home you like. Today’s real estate market moves very fast and if you hesitate you might miss out on your chance to buy a house and get a good deal.
- Just because an inspection reveals damage to home it does not mean you will get a credit. Depending on how fast homes are selling you may need to inspect before making an offer.
- Always ask the seller questions about why they are selling. You do not want to waste time on an offer if the seller is not fully committed to the sale. You can also glean a lot of information searching online or getting public records.
- Never expect to get everything you want. No house is the absolute perfect fit. You will always have some items on your checklist that go unmarked.
- Ignore decorations when looking at a home and think about potential instead. It’s not very hard to renovate and make changes to aspects of a home you do not like.