If you are a first time house buyer, you must be assuming that your real estate agent will do all the negotiation and talking on your behalf. Surely they can be helpful but only you can bargain for what you want.
On this journey to negotiate, these tips will come in handy.
Do Your Research
Don’t start the negotiation without learning more about the neighborhood. Do comprehensive research on the prices of houses in the area you are considering. Pay attention to the properties that have been sold but are similar to what you want.
Compare the Price
It’s a great way to come up with an approximate market value of the house you are looking forward to buying. Consider the location, size of the land, number of rooms, the structure of the house, age, condition and the availability of the shops and transport counts.
Check the Property for Potential Issues
Always inspect the property for issues. Look for structural damages or defects. This is particularly important before settling on a price. Ask for a pest report or a building inspection. This will give you a clear picture of the issues.
If you happen to uncover concerns during the inspection, this will give you an edge and you can negotiate the price. Another benefit is that this will keep you from spending unexpected money on repairs after buying the property.
Make Your Starting Point with the Market Value
Calculate the value of the property and start with that figure. When you offer a price below the minimum amount, chances are the seller will accept it. He might also be forced to make a counteroffer. He wouldn’t want to make a strong buyer run away.
Learn About the Motivations of the Seller
It is always useful to understand the motivations of the seller so that you can tailor an offer based on their demand. For example, if the seller wants to sell the property immediately, they would be happy to make a shorter settlement. They might also accept a lower offer. On the other hand, if they are not in a rush and looking for a longer settlement, they are more likely to wait for an offer that is closer to their asking price.
Your real estate agent might not tell you everything about the motivations of the seller because they are acting on the seller’s behalf. Therefore, you have got to be careful.
Never Appear Too Keen
Let’s say you really love the house. Whatever you do, resist your temptation of jumping with joy. If you show the slightest bit of excitement, the seller will manipulate you for sure. Instead, play hard to get. The key is to hold yourself back from being too enthusiastic.
In case there is an obvious drawback, a small bathroom or an outdated kitchen, point that out. If the seller is desperate, they will have no choice but to negotiate.
Always Give the Offer in Writing
In some cases, words have no value unless they are presented in writing. Buying a house is one of them. Plus, sellers like it when their solicitors put the offer in writing accompanied by the proof of their mortgage offer. This shows that you are flexible about exchanging and completing the offer to suit as per your schedule.
Keep the Money Ready
Along with negotiating the price of the property, you must also keep the money ready. This includes knowing your budget so that you can position yourself as someone who is seriously interested in buying the property.
If you have to apply for a loan, do all the due diligence beforehand. You can also consider a home loan pre-approval. This will let you know the price range you can afford. It will also demonstrate your stand as a buyer who is motivated. Keep in mind applying for too many pre-approvals with different lenders could impact your credit score.
Preparation is the key when it comes to negotiating for a house. This will boost your confidence big time. This is one of the major purchases of your life so do the groundwork beforehand. Keep your emotions in check and most of all, know your financial limits. With your efforts and the resources of your realtor DC, You will get a deal that is in your favor.