Finding your dream home is just one part of the equation. Expert negotiation plays a significant role in the home buying process for both the seller and the buyer. The seller is vying to get the highest purchase price possible, while the buyer aims to get the price as low as possible. The final price has to be fair for both the seller and the buyer.
How do you successfully negotiate your dream home? Read these best-kept home buyer negotiation secrets you need to know before you make an offer!
To Be Prepared is Half the Victory
If you’re going to hold your own in negotiations, you need to know your stuff. This means being as prepared as you can be. Here’s how to make sure you are prepared.
Shop around to find the best lender for your situation and get preapproved. A preapproval letter tells sellers that you are serious, secure a loan, and how much home you can afford. Not to mention, you may not be able to schedule in-person showings without a preapproval letter.
Organize Your Paperwork
From the moment you begin the homebuying process, it is crucial to stay organized. Keep all relevant paperwork in one place that is clearly labeled and easy to access at a moment’s notice. Things can move fast in the real estate world, and you need to be ready.
Avoid Being Blindsided
Familiarize yourself with the home buying process so that you are not caught unprepared and can make informed and educated decisions.
Know What Your Must-Haves Are
The last thing you want to do is put yourself in a situation where you don’t know your limits and end up being persuaded into stepping outside of your boundaries. Determine your limits, such as the maximum price and other details you want in the contract.
You must stay on top of your game and be prepared from the beginning in order to negotiate the best deal possible.
Gather as Much Information as Possible on the Home
Congratulations! You’ve found your dream home, and you are ready to make an offer. Whoa! Not so fast. It’s time to learn as much information as possible so that you can make the best initial offer possible. These are the questions you should ask:
- Is the home in foreclosure?
- Is this a short sale?
- Are the owners still living in the home? If so, how much time do they need to move?
- How long has the home been on the market?
- Are there any other offers, or have there been any other offers on the home? If so, why did these offers fall through?
- What is the absolute highest price that you are willing to pay?
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Ultimate Negotiation Goal?
Before entering into negotiations, you need to decide your ultimate goal. Here are a few goals you may be aiming for:
- Get the seller to make repairs or upgrades
- Be the seller’s choice in a multiple offer situation
- Save as much money as possible
Keep in mind that negotiations may occur multiple times during the process. The goals for each negotiation may be different. For example, in a multiple offer situation, your goal will be to the seller’s choice. After the inspection report returns, you may enter negotiations again for repairs. The bottom line is that you need to know exactly what you want each time you enter into negotiations.
What Can You Negotiate For?
Did you know that you can negotiate for more than just the price of the home? Many non-monetary things are up for discussion. These are the most common things you can negotiate for:
- Price – The final price of the home
- Contingencies – Agreements that must be met, and if they aren’t, you as the buyer can walk away, no questions asked
- Terms of the sale – Contents of the contract such as closing date
- Occupancy – Will the owner be allowed to stay in the home for a predetermined set of time, or do you want to be granted occupancy before the deal is closed?
- Furniture – Do you want any of the existing furniture included?
- Repairs – Do you want any repairs made based on the inspection report?
- Closing costs – Do you want the seller any or all of the closing costs?
- Fees – Do you want the seller to cover any additional fees?
Non-monetary negotiations can offset the total price or be used to lower the home’s final purchase price.
Conducting a Negotiation
Although you can enter into negotiations on your own, it is best to use an experienced Realtor. They will know how to present the offer and the best way to make your case. Your Realtor will also know how to pivot when need be and still work out a deal that is just as good if not better than the one you were initially going for. Here’s what you need to know how to do during a negotiation:
- Know how to present a strategic offer. It has to be of value to the seller as well.
- Know the maximum price you are willing to pay and do not deviate from it.
- Understand real estate lingo such as counteroffers, terms, etc.
- Make your intentions clear from the beginning.
- Avoid ridiculous negotiations that are insulting to the buyer.
- Know when to walk away from a deal.
Successful negotiations are the difference between getting your house for a great deal and spending more money than you had to. The above tips will help you negotiate your way into your dream house for the best price. Click here to read the full report!
Gitta Sells has over 32 years of experience in Florida’s real estate industry. Gitta and her team are expert negotiators who can handle the entire process for you. There’s no need for you to worry about honing your skills. We will do the hard work for you and get the best deal possible on your new home. I am happy to answer any questions you may have. Please feel free to reach out at 407-330-2181 or firstname.lastname@example.org. Don’t waste another minute. Let the most trusted Realtor in Lake Mary find your next home.