As the old saying goes, in real estate, everything is negotiable. However, when we think about it, is it really?
When you go to purchase a house, the one thing you are looking for is competitive pricing and terms. To achieve this, you need to understand when to begin the real estate negotiating process and when to stop. This begins with you being familiar with the real estate market, and also with the area.
When there are more houses for sale than people willing to purchase them, then usually there is more room for negotiating with the home seller. Conversely, if there is a shortage of property for sale, there is very little room left for bargaining and negotiating.
The pace at which homes are being sold differs depending on the time of the year and should be considered, as this can determine if homebuyers have more leverage. Apart from this, there are numerous sellers in the market who do not fully realize that the value of their house may not really be rising as fast as it did last year. This creates negotiation opportunities for some houses, if not all.
With all the home listings easily available online, numerous homebuyers might think they do not really require a real estate agent. It is apparently very easy to find the correct house for yourself online, however, this process is harder than it appears to be. A good real estate agent, with complete market knowledge and a negotiation experience, can be the difference between successful purchases and deals which fall apart. In numerous cases, buyers will pay nothing to use the agent as the real estate commissions are all completely covered by the home seller, and when you buy with a LystHouse real estate agent, homebuyers get cash back at closing*.
The following are some real estate negotiating tips, using which, homebuyers will be able to get some of the best deals around town.
Get Your Finances Prioritized Before You Start To Look For A House
Your offer is going to be so much less persuasive when it does not include a mortgage preapproval. There are various online portals which will not even show home to the buyers, until and unless they are preapproved. Sometimes this process might even take several months to accomplish.
Base The Offer On the Actual Home Value and not the List Price
The recent sale of houses in the neighborhood will provide you and your agent with the information and ammunition which you require. When a home is priced below or even at the market value, it is highly unlikely that you are going to get it for a lesser price. When it has been priced at above the market price and has also been on the listing for a long time period, a lower offer when accompanied by market analysis might get you the house at a lower price.
Do Your Math BEFORE You Get Too Hung Up on Smaller Price Differences
When the interest rate is 4.3%, the difference between $195000 and $199000 is only $19 per month. Do not be stubborn and lose a good house, just because you wanted to win. Think about the long run and not just the short one!
Do not Assume That The Inspection Is Going To Allow You To Re-Open The Negotiation Process
Even though it is acceptable to ask for due credit when the inspection of the house reveals some major problems, in a tighter market, you might not be able to receive it. Nowadays, it is highly unlikely that a home seller is going to make any significant repairs. Therefore, you are better off when you ask for credit at the closing, so you can simply hire your contractors. In numerous markets, prospective homebuyers perform a thorough inspection before they make the final offer.
When you Find The House You want, Make An Offer As Soon As Possible
When good properties go on the market, they can sell extremely fast. In a highly competitive market, the first offer that you make should be your best one. This is because if you take too many chances, it is possible that you are going to strike out very easily. Therefore, when you find the house at the price you like, make an offer on it as soon as possible before someone else makes an offer better than yours.
Ask Why The Home Owner Is Moving Out
The more information you have about the seller, the more tailored your offer could be. Does your home seller already have a new house and wants a very quick closing? Are the owners getting a divorce? Does the owner not have a new place and would likely elongate the closing? The more you know about the home seller the better strategy you can come up with.
Use Public Records Along With Online Real Estate Listings To Complete Your Research
You should focus on gathering relevant information regarding the seller, the neighborhood and the property. You should find out about the house being in foreclosure or not, or if the homeowner is party to some divorce proceedings. You can ask your LystHouse real estate agent to determine if the house has been listed for sale before and at what price.
Ask To Have Repairs or Maintenance Done
Even when the market is tight, you should always ask for the necessary repairs and concessions. You also need to understand, however, that all that you ask for is not always what you are going to get. To get the most of your repair requests, you should wait until the inspection period has successfully ended and then make all the requests that you have. The more you ask for something, the better the results are going to be. Your LystHouse real estate agent can work with you to negotiate on your behalf.
Expect Some Compromise On Your Part As Well
No matter what your price range is, understand that it is highly unlikely that you will find the perfect house. You would have to compromise on various different features of the house and sometimes even on the most important things, such as size, location, and price. Enter the negotiation process well prepared to compromise on several occasions. This is the only way to remain happy with any and every outcome.
Always Keep In Mind That The Terms Are Just As Important As The Price Itself
This might mean removing all inspection contingencies, paying a bigger down payment amount, accepting all the contents of an estate sale or even changing the deal closing date to facilitate the home seller.
Don’t Get Too Hung Up on The Home Décor
If the appearance of the house is not that appealing to you but the price range is, keep in mind that numerous things about the house can be changed very easily. This includes countertops, flooring, carpeting, and appliances. When you let go of the little things, the home buying negotiation process can be made very easy. At LystHouse, we’ve got teams to handle remodeling and renovation jobs of any size and scope.
If you follow the above mentioned eleven homebuying negotiation tips, you will come out of the entire process a winner! It is all about knowing the best real estate negotiation tips and tricks to deal with homeowners looking forward to selling their property. Even though some of your demands might not be met, most of them would be fulfilled, letting you have the best of everything. And when you use a LystHouse real estate agent, you’ve got a team of experts that will negotiate on your best behalf every step of the way. Call us to get started or schedule a home tour today. (855) 866-8339