“Everything is negotiable. Whether or not the negotiation is easy is another thing.” – Carrie Fisher
When it comes to home buying, you’re probably hoping to get the best price and the best terms on that particular home. In order to do that, you need to be prepared with the best negotiation tips. This simply begins with basic knowledge: be familiar with the current housing market, down to the city and maybe even the neighborhood.
It’s good to know whether or not there are more homes for sale compared to people who want them. When the housing market is like that, there tends to be more room for negotiation than if there’s a shortage of homes for sale. With the ease of home listings available online, future home owners may think that they don’t need a real estate agent.
Although it is easy to find a house online, it’s much harder to get from an offer to closing. A good real estate agent is going to have a great deal of knowledge of the current market and lots of negotiation experience. This can make a huge difference between a successful home purchase and a deal that falls through the cracks.
Although most home buyers will have a real estate agent helping them negotiate, it is still imperative to have familiarity with negotiation tips. If you don’t have a Realtor® yet, don’t worry – a Service First Loan Officer can help provide some recommendations.
Make sure your finances are together before you start looking for a house.
The offer you’re about to put down on a house is much less credible if you don’t have a mortgage pre-qualification. When you have one, it tells sellers that you are serious and can help you stand out from other buyers who may not be as prepared.
Do the math and don’t get agitated with small price differences.
For example, the difference between a $300,000 house and a $310,000 house may only be a few dollars a month. Don’t lose out on the right house because you’re getting hung up on slight price differences. If you need some to estimate how much a house will cost each month, Service First has a mortgage payment calculator that can help!
Be equipped to move fast if you find a home you like.
The housing market has been proven to be extremely competitive, so make sure you move quickly once you find a home you like. If you take too many chances, you might miss out.
Make sure your offer is based on the value of the actual home, not the listing price.
After doing your initial research on the neighborhood itself, you should have an idea of the recent sales in that neighborhood. Armed with this information, you and your real estate agent should be able to get a great offer.
Use public records to your benefit.
Gather as much information you can about the neighborhood, property, and the seller. You can find out very valuable information like if the home is in foreclosure, and you might be able to tailor your offer to this information. Knowledge is power.
Why is the seller moving?
FIND THIS OUT! The more you know, the more you can adjust your offer. Is the seller getting a divorce? Does the seller want a quick closing because they are moving? Ask a lot of questions.
Get over the décor.
Countertops, wood floors, carpet, outdated ceiling fans and appliances can all be easily changed. Don’t let outdated things deter you from buying a house that might be almost perfect for you and your family. In fact, Service First offers renovation loans that can be used to help make updates to a house and make it perfect for you!
You WILL compromise.
No matter your price range, you aren’t going to find the most perfect house that checks every single one of your boxes. You’re more than likely going to have to compromise on either location, size, or price.
With all of these tips, you and your real estate agent are bound to find you a great home for a great price. Contact a Loan Officer today to get started!