How to Negotiate a House Purchase
When you’re on the lookout for your ideal home in the area you want, it’s easy to feel a little like you’re on the back foot from the get-go. If you find a home that you really want, it can seem like everybody else wants it too, that you need to fight for it and, ultimately, that the sellers have the ability to make you jump through all sorts of loops in order see the home go to you.
Of course, in the case of really desirable properties – those well renovated, in a great area, and with all sorts of other attractive features – the home buying process can turn into a bit of a scramble. But in most cases, the buyer can actually have a lot of aces up their sleeve. And even in the case of those super-desirable homes, you should always try get the price down as much as you can. The way to do this, of course, is to negotiate.
The Importance of a Good Realtor
But how does one negotiate successfully? CityHome Collective, a real estate brokerage specializing in precisely the kind of desirable luxury homes that typically inspire bidding wars, recommend that the only way to be both competitive with other buyers and to get a property for the best possible price is to enlist the help of a professional realtor.
The reason this is so important is that a professional realtor can advise you not only on how much the home should be worth, but also on how much it can be expected to sell for in a particular market. Depending on where the home is being sold and to what type of buyers, the expected selling price could vary quite a lot. And it’s unlikely you will be able to tell this yourself.
Before Negotiating a House Price
Getting the best house price for you is a matter of negotiating properly. But to do that, there is some essential preparation. Here is what to do before you begin the negotiation:
Prepare Your Finances
To buy a house, you will need to be able to prove to a seller that you can get a mortgage. If you cannot do this then you can likely forget about getting the property. Aim to get a preapproved mortgage loan before you submit a letter and obtain proof that you have this.
Know the Market
This step is of course part and parcel with getting a good realtor. But you should also be aware of the market you are buying in. The amount of room you have to negotiate is inversely proportional to the interest in the home. So be aware of this.
Now follow a couple of tips for negotiating:
Get an Inspection
Even if you do not have much room to negotiate, be sure to get an inspection. You can be sure that other buyers will be doing the same and thus a knowledge of what the home is actually worth will help you beat the price down.
Don’t be Afraid to Walk Away
One sure way to put yourself immediately on the back foot is to be desperate. If a seller will not budge an inch and all evidence suggests that they should, then you should abandon your interest. Doggedly trying to win a bidding war is the way to get saddled with a bigger loan when you finally get the house that isn’t worth what you paid.
Negotiating is ultimately something of an art, which is why professional help is essential. Nevertheless, by following these tips you can certainly strengthen your position.