You are almost there, to move into your forever home. You like the house, the neighborhood and the curb. And the only thing left is negotiating the price.
It can surely be intimidating. And, if you are wondering if you should ask for a negotiation, you might not be on the same page as the seller. According to several studies, the seller always expects the buyers to negotiate the price. That is why they et the price a little higher than usual.
So, after finding a great deal on HomeFront, you must work on your negotiation skills because it’s the key to finalizing the best deal.
Here’s how to negotiate the home price.
Things To Do Before Negotiation
Here are some of the things you must keep in mind before you get started with the actual negotiation-
Work with a realtor
If you are thinking of going solo on a house hunt, you might not be off to a good start. Realtors don’t just introduce you to the homeowners, but they know everything about the market.
They are well-versed with negotiation tips and know when the interest rates might change. In fact, most realtors can separate their emotions and negotiate professionally without having a fear of losing the house.
Know what you can afford
Before you finalize the deal with a seller, it is vital to know what you can afford. You can apply for pre-approval. During this process, the lender will access your credit history, credit score and current debts to finalize how much you can afford.
Once you have a number in mind, try to shop within the budget. This way, you would know what you could afford and be confident enough to negotiate the right price.
Analyze the market
Studying the market can help you find out the conditions prevalent in the market. If the market is cold and the home you have eyes on is getting multiple offers, you might not be able to negotiate much. But, if the house is on the market for a longer period, you could go for huge negotiations.
Here’s when your realtor can be a valuable asset. They can analyze the market for you and determine how long the house is being listed. Based on this analysis, you can negotiate the price.
Tips For Negotiating The Price
With your pre-approval letter in hand and your realtor right beside you, you can go for the negotiation process. Here are some tips to strengthen your game-
Get the house inspected
Before you decide to move forward with the house, it is vital you get the house inspected. Inspection will allow you to figure out what the house is lacking and what needs to be repaired.
Based on the analysis, you can ask the seller for a negotiation, especially if the house is in need of renovation or repairing.
Another important thing is to know the difference between a home inspection and an appraisal. A home inspection will allow you to know what repairs need to be done and the weaknesses of the home. On the other hand, a loan appraisal will simply determine the actual cost of the house by comparing it with at least three like properties. The loan appraiser officer will not be responsible if you find out that the house is full of termites. For that, you would need a home inspection.
Communicate through the agent
While it might be appealing to crack the deal personally, it is often recommended to contact the seller through your agent. Your agent would be well-versed in how to negotiate properly.
Ask the seller for closing costs
In some cases, the closing costs might be paid by the seller. However, if the seller is adamant about paying only half of the fees, you can ask them for a negotiated price.
In addition to the tips listed above, you can get a little personal with the seller to finalize the deal. Because every seller is emotionally attached to the letter, you can attach a personal letter along with your offer letter, explaining why you like the house.
However, if the odds are in your case and the seller is charging way beyond your budget, do not be afraid to walk away from the deal. You can easily find millions of options on HomeFront.