Thursday, January 9, 2014
Once you’ve found an ideal home on the market, the next step is to successfully negotiate a deal that works for your budget. Follow these tips to create a favorable negotiation process.
Do research. Don’t get fixated on one property and stop shopping around. Looking at different properties and knowing how much they’re selling for will help you know the running price of real estate in the area. This is very important knowledge for negotiations later on.
Don’t reveal too much. Try not to let on how much you like the property. Having a cool façade as you negotiate with the seller will keep the seller from thinking you’re very willing to buy the property immediately. If you need to move houses as soon as possible, don’t reveal this to the seller either. Knowing your obvious need will prompt the seller to keep to his price.
Know the seller. Find out what he needs out of this transaction. If the seller isn’t in a rush to sell the property, take your time expressing your interest in buying as well. On the other hand, if the seller is keen on cashing in on his property, making a realistic offer right away will be something he’d have a hard time passing on.
Assess the house. Check every area of the house, both inside the home and out, for possible damages. It is also best to get a professional opinion on the house’s structural integrity and overall condition. A thorough inspection of the house and discovering areas in need of repair will give you leverage on negotiations.
Make a realistic offer. Haggling for an unrealistic price compared to the initial price will turn the seller off. He might end up not taking you seriously on your offer, whether this one or the next. It is best to avoid lowball offers.
Walk away from a disagreeable price. Be prepared to walk away if negotiations don’t go your way, and the final price does not fit your budget. Going over your budget and financial capacity is a risk best left alone. Shop around for other properties in the area instead. - Aislinn Kee