Buying a home is likely to be the biggest purchase you’ll ever make—so why not try to get the best deal you can? Negotiating a home sale can be a daunting task, especially if you’re in unfamiliar waters.
Here are some negotiation tips to help you through the process.
Before Making an Offer
Get Pre-Approved for a Mortgage
There are a few things you should do before even making an offer on a house, and getting pre-approved for a mortgage is one of them. By getting pre-approved, you’ll be able to more thoroughly understand your budget before you even get to the negotiation table. In addition, you’ll show sellers you’re a serious buyer.
Set a Budget
Determine your budget before you begin your house search, then stick to it. Keep in mind there will be closing costs associated with purchasing a home, so these should also be factored into the budget.
Find an Experienced Agent
Typically, your negotiations will be done through your agent and the seller’s agent. A good agent will be able to help you make a strong offer while still trying to get you the best deal. They can also help navigate you through what conditions to include in your offer and what to forgo.
Understand the Market
It’s never a bad idea to research the market you’re looking to buy in, especially before putting in an offer. Your agent can help you look at what other homes in the area have sold for so that you have a better understanding before going into negotiations.
The Negotiation Process
Make an Offer
You’ve found a home you love and want to put in an offer, great! Your agent can help you determine what a strong starting point is and what contingencies to include in your offer.
While it is possible you could end up in a multiple offer situation, it is not as common these days as it was a few years ago. Determining a good starting point with your agent leaves the offer up for negotiation with the sellers and will hopefully result in a place where both parties are happy.
Be Flexible
Both parties will likely have to make concessions during the negotiation process. Be open to change on things such as the closing date or certain contingencies.
Keep Documents Organized
There can be a lot of back-and-forth with negotiations, and it can result in a lot of paperwork. Your agent should help you keep track of important dates and forms, but make sure you have copies on file for yourself as well in order to avoid any confusion.
Don’t Be Afraid to Walk Away
It would be great if every negotiation went smoothly and everyone ended up happy, but that’s not always the case. If the sellers won’t budge on key contingencies or the price, then you may just have to walk away.
Negotiations are stressful, but finding the right home at the right price is worth it in the end!
