Everyone loves to snag a fantastic deal, but no one wants to risk missing out on their dream house because they misjudged the moment to press for more from a stressed seller. For most Americans, a home is not only a major purchase, it’s an uncommon one. To add to the weirdness, set prices are more common than negotiated ones. Learning some tips for negotiating home prices is smart.
Tips for Negotiating Home Prices
Why would you want to spend time familiarizing yourself with tips for negotiating home prices? Doing so can prepare you for what lies ahead. The additional insights may also help you feel more in control during the negotiation process, and that might make it easier to keep your cool and make smart choices. What tips for negotiating home prices should you know?
Decide What Winning Is for You
Negotiating quickly stirs competitive feelings. According to HomeLight, it’s vital that you decide what will define winning for you before you get caught up in the spirit of the game. Do you need to get the lowest price? Do you want to have control of the property by a specific date? Are you intent on getting some repairs completed at the seller’s expense? Are there certain features that you’re determined to secure? Identifying what your priorities are before emotion or adrenalin enters the picture makes it easier to decide where you’ll stand firm and where you can be flexible. That will make negotiating much easier.
Work with an Experienced Real Estate Professional
While you may not negotiate the purchase of homes on a regular basis, you should be working with someone who does. As Curbed points out, you should be able to turn to your real estate agent or broker for advice and guidance throughout the homebuying process. They should be ready to answer your questions about the market, potential strategies, and all the ins and outs of negotiating the purchase of a home. However, the decisions are ultimately yours.
Understand the Implications of the Market That You’re In
Are you in a buyer’s market, a seller’s market, or a balanced market? It’s important to know the answer because the type of market that you’re in impacts the way you’ll negotiate. Zillow explains:
- Negotiating in a Buyer’s Market: In a buyer’s market, demand is low, and properties are moving slowly, so sellers are generally eager to work with interested buyers. This is especially true of motivated sellers who are under pressure to sell quickly because they have commitments elsewhere. When you’re negotiating in a buyer’s market, you can ask for more. However, you should still be careful to avoid insulting the seller. After all, an offended seller is less likely to agree with your requests.
- Negotiating in a Seller’s Market: In a seller’s market, demand is high, and there are more buyers than there are homes, so properties are selling like hotcakes. Sellers have little need to negotiate because they have plenty of buyers who are eager to snap up their homes. When you’re negotiating in a seller’s market, you’ll want to keep it quick, simple, and respectful.
- Negotiating in a Balanced Market: In a balanced market, the number of homes and buyers seeking them is fairly equal. There’s less urgency, and neither side has the upper hand, so negotiating can take longer here.
Keep Your Emotions Under Control
Buying a home is incredibly stressful, and emotions often run high. While it may be difficult to do, don’t let your emotions lead the way when you’re making financial decisions about buying a home. When you receive a response from the seller, take time to cool down, think things through, and listen to opinions from experts like your real estate agent before you make a decision.
Be Ready for No
Sometimes, it isn’t meant to be. If you can’t put together a deal that you’re comfortable with for a property, be ready to say no, end negotiations before signing an agreement, and move on. As Credit.com indicates, missing out could be a blessing. After all, it’s very common for interested buyers to miss out on a property that catches their eye and find something that suits them better soon afterward.
Whether you’re a first-time homebuyer who’s eager for advice on negotiating the best home price or a veteran homebuyer who knows exactly how to secure a fantastic deal, the team at PrimeLending Twin Cities is ready to work with you. Contact us today to discuss your housing goals.