The Art of Negotiation for Homebuyers
Negotiating the purchase of your new property requires skill and a lot of patience. By considering what you want out of the deal, items that you are are firm on and items that you are flexible on, as well as points that you can use as leverage, will offer you the best chance of getting what’s most important to you.
Whether you are well versed in negotiations or not, it’s best to enlist the help of a trusted realtor and mortgage professional. Together, we can create a checklist of what matters to you the most so that we can aggressively, but fairly, negotiate the purchase of your new property.
While it's understandable that you would want things to go in your favor, remember that the lender will be looking at the fair market value of your chosen property. Prepare for the negotiation by asking for a comparative market analysis that shows the trends in that area. This will give you an idea of whether the seller’s asking price is reasonable.
How to Negotiate When Purchasing a Home
You can also ask for information about the length of time that the property has been on the market and if there had been in price changes during that time. All of this is valuable information for negotiating the cost of the property.
The comparative analysis, listing history, and price fluctuations are important details to know, however, the details are only as strong as your agent and mortgage professional's ability to represent you effectively.
Research and interview different real estate agents and ask specifically about their skills in negotiating for the buyer.
If you need a place to begin your search for a real estate agent with exceptional negotiating skills, contact our office as we have developed strong relationships with the best in our industry.
Another party that will be at the negotiating table is the seller. Listen attentively to the seller's wish list as it may reveal additional information that may be used as leverage as you negotiate the price of the property.
Revealing details could include whether the seller has a deadline. If the seller has already purchased a new home or has to relocate quickly because of a commitment to a new employer, then you will have more room to work out a deal. You'll also want to find out what the current mortgage balance is as well as their bottom line.
A common point for negotiating is asking the seller to pay for your closing costs and pre-paid items. We can explain how much seller concessions are allowed within the various loan programs.
On the other hand, if they are selling because they're no longer able to upkeep the home or are unwilling to invest in repairs, that means that this additional cost will be passed on to you.
If you are new to the area, ask the seller if they are aware of any problems in the neighborhood. Neighbors and the local police department are other sources for information of this nature.
There will be a point when the seller is firm and no longer willing to negotiate, but even then, you can get something in return too! While built-in amenities such as the dishwasher and garbage disposal typically stay with the home, you can negotiate other items that would normally be associated with a home purchase.
However, remember that personal property such as a lawn mower or flat screen television cannot be included or financed. Be prepared to split the difference and create a situation that is win-win for both you and the seller.
In conclusion, be clear about what you want and be flexible with your methods. But above all, know that you have the backing of an experienced mortgage professional assisting you along the way.
Call for a free consultation today!