If you thought you wouldn’t need to negotiate when buying a home, you’re wrong. There is no one else who will get you precisely what you want, at the time and price you prefer, but you. True, expert real estate agents will do what’s in their power to find a house that suits your needs. But not many, if any, will help you get the best price. They only get paid if they make the sale so if you agree to the asking price it makes their job much easier. Otherwise, there can be lots of “back and forth” and even the possibility of losing the sale.
Working with Real Estate Agents
While real estate agents may be goal-oriented experts, they will still represent you in the best way possible. That implies that they will ask the seller or seller’s representative anything you require. However, to know what to ask from your agent and which house buying negotiation tactics to apply, you need to do your homework and
- determine your budget
- get familiar with the local real estate market
- find out why the home is put out for sale
- arrange for a home inspection.
Getting sufficient information on these topics will allow you to negotiate from a better position. It would be a waste to pass on an opportunity to negotiate on
- the closing costs (percentage)
- repairs following inspection
- updating fixtures and cosmetic improvements
- closing date
- house price.
This means that you and your agent need to work together toward the goal. Having a representative in this endeavor is invaluable but you still need to invest your own time and energy into the process.
Home Buying Budget
The first thing you need to decide in the beginning is your finances to know you’re ready to buy a house. Take time to set your home buying budget as it will make a solid ground for further negotiations. This specifically concerns your credit score. If you get your finances in order on time, you can negotiate when buying a home from the position of someone with an approved mortgage.
This will also allow you to approach the deal with a stronger offer and possibly arrange with the seller to cover a part of closing costs. If the home is in a buyers’ market and the seller prefers to close the deal as quickly as possible, your offer may be accepted immediately, and closing costs covered entirely by the seller.
Get Familiar with the Local Real Estate Market
Even if you’re planning on exploring the benefits of downsizing, you should prepare. To move to a smaller house, you still need to go through the process of home buying, which can be taxing enough. Especially if you’re buying in a location far from home, in a market with which you’re not familiar.
Hiring a local real estate agent will save you much trouble, not to mention money, in discovering the right property you can get at a discount. Also, they will communicate with the seller in the right way, asking the right questions in the proper manner. They will most likely save you from a bad deal solely through their experience and may even discover some new negotiation points you can rely upon.
Find Out Why the Home Being Sold
One of the first questions buyers ask is why the home is being sold, and with a good reason. The reason for sale may affect its urgency, which makes an excellent foundation for negotiations. Sometimes, the seller is in a hurry and may agree to a lower selling price if that means he’ll close the deal sooner—a satisfying solution for both of you.
On the other hand, you might need to prolong the date in case you haven’t found the movers yet, or your current lease has not expired. If the seller is satisfied with the deal, they might adjust the closing and possession dates to suit you as a show of goodwill. Sometimes, negotiations are not entirely about the money.
Arrange for a Home Inspection
Always, without exception, invest in a home inspection conducted by a licensed contractor firm. A plethora of problems are discovered during a thorough inspection, some of which are potentially dangerous. Structural issues, for example, are too severe to ignore for health and safety reasons. However, they are also a foundation for negotiations. The seller may decide to fix the issues, or they may agree to the lower price.
Should you need to store away your furniture due to the delay the repairs are imposing, you may opt for a short-term storage facility in the vicinity. When deciding upon a specific storage solution, bear in mind that there are bonus storage features that cost extra, such as climate control. Always make sure you are familiar with any extra fees for some types of storage before the payment due date.
Also, the seller may agree to make some cosmetic upgrades to secure the deal. Upgrading lighting installations, repainting interior walls, re-caulking, or re-glazing bathroom fixtures are some of the points you can and should negotiate when buying a home. The seller might even agree on leaving their garden furniture or heavy appliances at your disposal if you ask. They may be too costly to move and you’d appreciate not having to buy an expensive appliance right after a home purchase.
A few final notes
The only thing left is to calculate the cost of relocation and pack your belongings for the move. Buying a home implies determining moving expenses in advance. That is if you have any intention of relocating affordably from your current home. With proper preparation, you can negotiate when buying a home and lower the home price enough to cover your relocation costs and spare.
No matter how reluctant you are to negotiate, you should do it, especially in these trying times when the value of money seems to be higher than ever. And don’t worry, everybody is likely to come out from a deal as a winner. That is, after all, the whole point of home buying negotiations done right.
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