When it comes time to buy a home, you probably want to receive a good deal. Nobody wants to overpay for their home and this is why negotiation is such an important part of the purchasing process. By negotiating intelligently and strategically, you can potentially save thousands of dollars on your closing costs and the total price of your home. So how can you sharpen your negotiation skills to secure the best possible price on your dream home? Read on to learn what you need to know.
How to Negotiate the Best Price For Your Home
Do your homework
The most important piece of information that will help you determine a fair price for your home is knowing what other similar homes have sold for. That’s why your realtor will need to run a Comparable Market Analysis (also called “comps”) that will help them identify recently sold homes similar to the one you are looking at. By knowing recent selling prices, you’ll have a good benchmark for what your dream home is worth, and you can offer slightly below market rate (~10% lower is a standard starting point).
Find out whether the seller is motivated
While everyone who has their home on the market hopes that it will sell, some sellers are more motivated than others. If you are looking at a home that’s owned by a young couple who aren’t under pressure to move and who want to wait to get the best price on their home, chances are you won’t be able to negotiate much. On the other hand, if the seller will be relocating due to work then they may be willing to consider a much lower offer if it means they can get the sale over with quickly. By finding out the reasons behind why the seller has put their home on the market, you’ll be in a better position to ask for what you want.
Be strategic and realistic
Chances are you’re not the only person with your eye on a particular house, so when you find something you love you need to act fast. This means that you’ll need to be careful not to make an offer so low that the seller no longer wants to work with you. If a price is too high and the seller won’t budge even after being shown comps then you don’t want to waste your time trying to convince them. Another house will always come along!
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Tags: home buying