5 Negotiating Tips for Buying Real Estate

Are you a potential home owner? Buying a home is a major undertaking. To get the best deal, you need to focus on the finer aspects of the home buying game. The general saying is that everything is negotiable in real estate, but it’s not that black and white. When you set out to purchase real estate, you intend to get the best terms and price. In able to be able to do just that, you ought to know when to start negotiating, and when to stop. Market familiarity is usually the first step. Narrow down to the neighborhood and street, and make sure you know as much about the area as possible. There’s more room for negotiations when there are more homes than buyers. But things are a little bit tough when there’s a shortage of inventory. Follow the tips below to land your best real estate deal!

1.      Put your Finances in Order

Before anything else, make sure that your finances are in order. Your offer is much less persuasive if it doesn’t require pre-approval of a mortgage. So have things taken care of financially before you engage your agent in house hunting.

2.      Think About Value, Not Price

Most people make the mistake of placing too much emphasis on the price, rather than the value. Your real estate agent should be able to gather information on recent homes sales in the neighborhood. If a property is priced below market value, you have little room for negotiations, but possibly a great deal on the price. There’s more room for negotiation if the price of the property is listed above market value. A good agent should be able to guide you so that you negotiate to get the best value, not price.

3.      Move Fast

If you see a home you like, move fast. If you’re in a highly competitive market, where homes tend to go very quickly, make your first offer your best offer. You don’t want to take too many chances, otherwise, you’ll miss out on the best deal. People who’re always inclined to making a lower offer learn their lesson after they miss out on the property.

4.      Ask for Repairs

In a tight market, you want to ask for concessions and repairs. If you don’t ask, you won’t get. However, understand that you won’t be getting it all. Put your money in escrow, and wait until the completion of the inspection period before you make such requests. Ask for more, rather than less.

5.      Gather Seller Information

It’s important to find out why the property is on sale. The more information you gather about the seller and his or her property, the better placed you’ll be to make a tailored offer. If a seller already has a new home and is looking to close quickly, that means you could move in fast to get a good deal. Is the seller divorced? Is the seller in a hurry to sell or not? You have to find the answers to all these questions. The more you know, the better!