Once you have located a home that you want to buy, the next step is negotiating the price with the seller. First-time home buyers who have no experience of buying or selling a home usually find themselves at a dead end by this point. Negotiation requires a lot of patience and tact. Even with years of experience, you learn new negotiating tips each time you are in a home transaction.
How can you make your home buying process smoother and more beneficial to you? Here are some tips.
Get a Realtor
An experienced realtor or real estate agent will be able to help you at this point of your transaction. Their experience, skills and knowledge of the market will help them negotiate much better than someone who has no idea what to say. Your agent can advise you about the best price to start with as a home buyer, and the most useful way to get the seller to listen to you. The final decision always rests with you but taking advice never hurts.
Being polite, courteous and nice can go a long way in turning an otherwise obstinate seller into someone who is more inclined to listen to you. If you display a love for the home, ask about the kind of activities around the area and praise how well they have maintained their home, the seller will be more than happy to lower the price even if just a little bit for someone who is so nice.
Do Your Research
Before you begin your negotiations, find out how much other homes have sold for in the same area. This information will aid you in negotiating for a lower price if the home has been priced higher than other similar homes in the location. If you are using an agent as a home buyer, they should provide you with a Comparative Market Analysis which will give you a good idea of prices in the area. If you are not using an agent, you can always contact an agent and ask them for a CMA.
Also, make sure you have surveyed the house. This will give you further points for negotiation if there are any problems you have found that would require you to spend money on repairs.
Don’t Try to Bid Too Low
After you find out if the asking price is not too over-priced, you can try and negotiate for a lower price. However, remember that the seller has also done their research and is probably aware of the market price for their property. Trying to bid too low will result in a direct and instant rejection and a loss of your reputation in the eyes of the seller and the real estate agent. Don’t try to get over-smart; the seller knows what you are doing. Be reasonable in what you are asking for and the seller may be inclined to agree.
As a first-time home buyer, negotiating can seem like a difficult task but with a little research and some good people skills, you can definitely make a good deal.