Learn negotiate a real estate deal and save yourself lots of money.
When purchasing a new home it is always a good idea to do everything you can to get the best deal possible. Regardless of whether the market is currently in favor of the buyer or the seller, the buyer can work with a real estate agent and the current owner to negotiate the best terms available. There are several ways to try and lower the amount you pay for a home, and other ways to ensure that you do not pay too much.
Comparable Market Analysis
Make sure you have a buyer’s real estate agent to represent your interests instead of dealing with the seller’s agent. This way you can obtain a trustworthy comparable market analysis (CMA) on the property and other similar properties in the area, according to Real-Estate-Agents.com.
The CMA will list information on the asking price for all properties in the same area and will list the selling prices for any properties sold in the same area. Compare size, condition and features to make sure you know what a reasonable and realistic selling price is for the home you are interested in.
Don’t Lowball
Refrain from making unrealistically low offers on a home. Do the market research and see if the asking price seems to be within reason. Offering $125,000 for a home that is listed at $175,000 when the market research shows an estimated value of $170,000 to $180,000 is a bad idea. The sellers may be more aggravated than tempted by the offer and will be more likely to accept nothing less than their original asking price.
Meet In the Middle
If the home you are considering is one that you really desire and the price seems fair, try to meet in the middle on the extras, according to Realtor.com.
If the home needs some repairs or the seller wishes for the buyer to take on all closing costs then try negotiating those points. Try offering that he pay half the closing costs or repair half of what needs to be done. This could save you thousands of dollars.
Know the Seller’s Motives
Don’t be afraid to snoop around a bit when it comes to learning more about the seller. This can be a big advantage for a potential homebuyer and it will indicate how much negotiating room you really have.
Ask about the seller’s motives. If he is taking a new job out of state and needs to dump the house in a hurry and get moved, then there is a good chance he can be haggled with. On the other hand, if the owner is a wealthy retiree who is in no hurry to relocate, then the house may be available only for the asking price under the seller’s predetermined conditions.
List Boundaries First
Make an actual list of your spending limits and wishes, according to the First National Bank website. Decide in advance the absolute top dollar you are willing to pay for a home and what you expect to get for that money. Give it to your real estate agent and tell them that unless you can meet those criteria, then you will not buy. Don’t get sucked into a deal because you found a house that you are in love with even though you had already decided ahead of time that it isn’t what you need and is more than you can afford.
Tags: asking price, real estate, estate agent, real estate agent, closing costs
