Almost 50% of Americans are considering moving homes by the end of 2021. Moving house can be a source of both stress and joy, and much of this is determined by how the real estate negotiations go.
So how can you make sure you’re getting a good deal for your new property? And what are the important steps you need to go through while negotiating?
Keep reading for our top tips when agreeing on a price for your new home.
1. Get a Home Inspection
One of the most important steps to take when negotiating a house price is to get a home inspection. Benefit from an expert’s review of the property to find out the potential damage that might exist in your new home.
Finding a home inspector is easy! If you’re in Northeast Ohio look no further than Class Home Inspection. We’ll help you make sure there are no nasty surprises hiding in your dream property.
Check out our list of the top questions you should be asking during the home inspection.
2. Communicate via Your Realtor
Realtors are an important part of the house-buying process. While many people imagine that they can negotiate with the seller themselves, they often underestimate the role a realtor can play.
Your real estate agent will have an excellent knowledge of the housing market in your local area. They will also be familiar with a lot of the jargon and terminology that is associated with evaluating a property.
Finally, they have a great ability to phrase questions and negotiate in a way that doesn’t offend the seller.
3. Understand Your Seller’s Motivations
When negotiating a home price, it is helpful to know the position that the seller is coming from. Are they desperate to move out as soon as possible? How important is it to them that their home is sold to the ‘right’ people?
Being aware of your seller’s motivations is crucial to house price negotiations. If you can understand their timeframe and reasons for moving, you will be able to broker the deal from a position of knowledge and strength.
4. Be Proactive
Adopting a proactive rather than a passive attitude goes a long way when negotiating a price for a house. By being bold, you are more likely to get the home you want for the price you want.
During the negotiations, listen carefully to what the other party has to say. Consider how your priorities and their priorities can fit together. This will make sure everyone gets the best out of the negotiations.
5. Ask Questions
Our next tip is not to be afraid to ask difficult questions. It is important that you find out everything you need to know – the good and the bad – before you buy a property.
Getting a home inspection is one way of finding out the answers to these questions. Make sure you find out about the true state of the property you’re hoping to buy. This will help you to negotiate a fair price for the home and ensure that there are no surprises or unexpected expenses after you’ve moved in.
6. Don’t Rule Out Walking Away
When buying a home, you must always consider the possibility that the negotiations will fall through. While this can be difficult to come to terms with, you should not feel obligated to pay an unfair price even if it’s for your dream home.
If the price of the house is going to result in you taking out an unrealistic loan, it’s time to go back to the drawing board and ask your realtor to set up some more property viewings.
7. Know the Market
Knowing the market is a crucial piece of the negotiation puzzle. Your real estate agent should be able to help with this, but you can also do your own research.
Find out what similar-sized properties nearby have gone for in recent times. You can also try to work out if prices in the housing market in your area are on an upward or downward trend.
If the buyer has been on the market for a long time, this could be a great opportunity to negotiate for the price you’re willing to pay.
8. Get Personal
This next tip might seem like a contradiction to communicating via your realtor. However, there is a time and a place when personal communication between the seller and buyer can push a negotiation ahead.
Consider writing a personal letter to the buyer with the reasons why you want to buy their home, what you hope to achieve in their home, and why it means a lot to you.
9. Be Flexible
Next, when buying a home, it is important to have some flexibility. This extends beyond the location and the number of bedrooms: you have to be flexible about the price as well.
The owners of your dream home might have a bottom line that they are not willing to go under. If this is the case, consider how much you value the property, and if it is worth looking at some homes that are closer to your price range.
10. Make Sure Your Finances Are Sorted
Our final tip to help you prepare for negotiating a price is to make sure your finances are in order. If you have already sold your property and you are able to make a cash offer on a home, this will be far more attractive to your sellers. It also means there won’t be a long chain of buyers and sellers that your transaction is dependent on.
If possible, secure preapproval for a mortgage before you approach the buyer with an offer.
Those Are Our Top Tips for Conducting Real Estate Negotiations
We’ve now given you all the information you need to get a great price for your new home. With a few tricks up your sleeve, real estate negotiations can be a walk in the park!
Don’t forget the importance of hiring a home inspector. If you’re thinking of buying a property in the Northeast Ohio area, make sure you schedule an inspection with Class Home Inspection.