Wednesday, December 4, 2013

Negotiating Your Way Into Your Dream Home

You could be looking to buy your first home, or maybe downsizing after retirement. Regardless of the circumstances, you of course want to be able to negotiate the best possible price for your new home.

The first crucial step of negotiating for homebuyers is getting pre-approved. Not only does it make sense to sit with your lender in order to have an idea of what you can afford, it also turns you into a cash buyer in the seller's eyes. It doesn't feel like you are negotiating, but you really are in a passive way. For example, if you are putting in an offer on a property in a multiple offer situation, even if your offer is slightly less than the competitors, you can see how a solid pre-approval can sway the sellers into accepting your offer instead of a competitor's offer which does not include a pre-approval.

Getting a pre-approval also saves time and can speed up the financing, which can bring forward the closing date and that is usually very appealing to a seller.

Before making an offer, do your homework! Work with a Realtor, who will be able to establish how much a property is worth. Your Realtor will be able to research comparables, the neighborhood and the market, all of which will help you make a realistic offer. If you come to negotiations with facts to back up your offer, the seller may be more willing to meet your price.

A listing agent will not be able to disclose the motivation or bottom line of the sellers. However, do your due diligence to find out as much as you can. Speak to neighbors. Is the property vacant? It might be that the owners are anxious to sell in order to make their next move.

The attitude you bring at the beginning of the process makes a lasting impression. If you go into it with a positive and win-win attitude, then if required, any negotiations needed further down the line will be much easier with both parties being receptive. Using facts instead of feelings also helps defuse a difficult negotiation. Sellers are emotionally invested into their house. Backing up your offer with facts (for instance, a general quote for repairing broken tiles, or a leaky chimney) shows that you are a serious buyer and will help avoid hurt feelings and resentment, which can lead to deals turning sour. And ultimately getting you in your dream home!

Do you have any negotiation tricks? Do you enjoy negotiating?

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