Even a 1-2% discount on a property can save you thousands of dollars. Negotiating isn’t a skill that comes easy and most have no idea what tactics to implement or what they can negotiate on. Luckily for you, the experienced team at Assents Agents do. This article will provide tips on how homeowners can secure the best possible deal when buying a home.
Be ready – As mentioned in our other articles, before you start the search get yourself pre-approved. This will make you look desirable to sellers and give you more power during negations. Becoming pre-approved lets sellers know you have the cash to backup your actions.
Be armed with an expert – A good Realtor in the local area will be full of knowledge and can help you achieve the best deal. Properties that are priced at market value or just under are much harder to negotiate unless the seller is in a rush to sell. However, homes priced over market value that have been on sale for a long time can be snatched up at a lower price, this sort of information can only be retrieved from a local Realtor.
As a result, making an offer below the asking price with accurate market research (done by a Realtor), will sometimes get you a property much cheaper than the asking price.
Move fast – If the market is competitive with properties in the local area selling fast, you may only get one shot at an offer and it has to be your best. Don’t expect to start low and then bid your way up, as before you know it the property has already been sold.
Ask for repairs – Found a house you like? But it needs some minor repairs? Ask the owners to make the changes before you buy the property. Bear in mind they won’t service all your requests but once you’re in escrow, the ball is in your court so don’t be scared to ask for a few minor repairs to help smooth over the deal.
Remember, if you don’t ask, you don’t get.
Why are they selling? – The more you know about the person selling the property, the better your negotiating strategy can be. For example, if the homeowner wants to sell quick, you may be able to get a lower asking price if you agree to settle the loan within 30 days or provide a larger upfront deposit.
Compromise- Negotiating is a two-way street and you may not get everything you asked for which is normal. The key is not to let your ego get in the way and become stubborn, as you may end up walking away from the house of your dreams because the seller refused to fix a damaged window or reduce the price by a few thousand dollars.
Put yourself in the seller’s shoes and ask yourself if you’re demanding too much, the best deals are ones that end in a win-win situation for both the buyer and the seller.
Personalise the offer – Send a short hand written letter to the seller to inform them why you want the property. Tell them about your family and send a picture. If the home has been owned by the seller for a long time, they too want the next family to enjoy the home just as much as they did. Adding a personal touch can sometimes be favoured over higher bids.
Negotiating in real estate must be done in a strategic and thoughtful way. Acting like a bull in a china shop will not get you anywhere other than leaving you frustrated. Sometimes having an experienced Realtor on your side can make all the difference and even help in negotiating if you’re too shy to ask yourself.