5 Home Buying Negotiation Tips

5 Home Buying Negotiation Tips

Tips for Negotiating 

the best Real Estate Deal.

This is a large purchase and you need someone on your side to help negotiate for you.  It's important to remember there will be some give and take and an experienced agent will help you through the process.  

5 Important Factors to consider:

Get your finances in order before you start looking for a house. Your offer is much less persuasive if it doesn’t include a mortgage pre-approval. I typically do not show homes until the buyers are pre approved for a mortgage. 

Do the math before getting too hung up on small price differences. At an interest rate of 4.3 percent, the difference between $195,000 and $199,000 is $19 a month. Don’t get stubborn and lose the right house because you had to win.

Base your offer on the home value, not the list price. The recent sales in the neighborhood give you and your agent ammunition and information. If a home is priced at or below market value, you’re unlikely to get it for less. If it is priced above market value and has been on the market for a while, a lower offer accompanied by a market analysis may get you the home. This is where a good agent can be invaluable.

If you see a home you like, be prepared to move fast. When properties go on the market, they go very quickly.  If you’re in a competitive market, make your first offer your best offer. There is always someone out there that will make a low offer and you want your offer to stand out.

Don’t assume that the inspection will allow you to reopen negotiations. It’s certainly acceptable to ask for a credit if the inspection reveals major problems. But in a tight market, you may not get it. These days, it’s unlikely that a seller will make significant repairs, and you’re better off asking for a credit at closing so you can hire your own contractors. 

Author: Libby Miller
Phone: 623-341-0348
Dated: March 5th 2015
Views: 625
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