Buying your dream home is one thing, but negotiating its price for a good deal is another story. Some people would prefer to spend all of their savings just to acquire a home that fits very well with their taste and style. However, not everyone has the luxury to spend it all, even on their dream home. Despite all the amenities, the great location, and the kind and friendly neighborhood, there will always be people who would strive to spend less and get the best deal!
If you’re trying to do the same thing yet you do not have any experience negotiating over a property’s price point, look no further than the following pointers:
1. Get Your Mortgage Pre-Approved Before Negotiating
Think of getting a pre-approval as part of the preparation phase. It can be difficult to negotiate the price if you do not have any cash in hand. Whatever amount gets approved, do not offer the entire amount. Ensure that you’ll save an appropriate amount to make up for other possible expenses, such as home repairs.
2. Ask Why the House Is Being Sold
There will always be a reason why a house is being sold by its owner. If the seller is planning to move out of the house for a job relocation, for example, perhaps you may negotiate more on its price.
If they’re selling the house because it’s old and upkeep has become bothersome, negotiating a lower price can be easier. It’s best to schedule a full-property inspection to further note which fixtures are damaged or broken. Try to attain a report of the inspection to utilize during the negotiation process.
3. Compare the Prices of Houses in the Local Market
Sometimes, a seller gets carried away with pricing their home. They may mark it much higher than the appropriate price as deemed by the current market.
Do your own research and ask your realtor to help you as well. With your realtor’s help, analyze the prices of similar-valued homes. If it turns out that the seller has unreasonably priced their home, then you may negotiate and present the results of your analysis.
4. Get the Help of a Real Estate Agent
Get the help of an experienced real estate agent who can do all of the “heavy lifting” for you. Aside from their negotiating skills, they will also handle some of the more complicated paperwork before, during, and after the deal. Their knowledge of the current market price is a valuable asset that can also turn the tide in your favor.
5. Ask for the Closing Costs
Don’t stay fixated on the down payment because you have the closing cost to consider as well. Closing costs include credit check fees, appraisal fees, and inspection costs. Basically, these costs are those that you’d pay to your lender when asking for a loan.
Negotiate the price with the seller via a concession. This means that you may ask the seller to contribute an amount as well to help with the closing cost.
Conclusion
Nothing is sweeter than buying the home of your dreams. While it may not be an easy endeavor at first due to the asking price, you can negotiate in order to get a better deal. Do your own research, compare the market prices, and come up with all the valid points for a decrease in price. Take note of the expert tips above and discuss your options with your realtor for the best offer.
If you are looking for reputable local real estate experts to handle your price negotiations for you, look no further than the MIGO Team! We are one of the top real estate agencies in upstate New York with years of experience in buying, selling, and new home construction. Contact us for more information about our complete lineup of real estate services.
