Home Buying Negotiations

Home Buying NegotiationsHome buyers need to do a lot of research before making an offer on a home. Home buying negotiations is crucial to the success of obtaining a home at an affordable price. The more knowledge a prospective home owner has, the better chance that he or she will be able to make an offer that seems reasonable to both buyer and seller, and the better chance that the offer will be accepted by the seller.

-Know the Seller
Why is the seller wanting to move, and how long has the house been up for sale? How many offers have there been on the house, and has the price been reduced? Have there been previous offers on the house, and if so, why did they not succeed? Historical records of sale prices and date of sale can be found on websites like Zillow, etc. An important aspect of home buying negotiations is to know as much as possible about the home seller.

-Include a Cover Letter with Your Offer

You should include the amount of money you are offering, the desired closing date, and any pre-qualifications or pre-approvals you have received for the loan, in order to stress your sincerity to the seller. It is important not to sound too desperate in a home buying negotiations so as to not exert your position on the home seller.

- Add a Personal Touch
Let the seller know why you believe their house is the perfect one for your family. Often this can make the difference between competing offers. Home buying negotiations don’t have to be loud or aggressive – often misunderstandings give rise to difference of opinions that cause many real estate deals to fall apart.

-Hire the Right Real Estate Agent
Make sure your real estate agent is well qualified in negotiating contracts. A broker or agent without good negotiating skills can destroy an otherwise sound offer by being rude or demanding.

-Buy Home “As Is”

If at all feasible, buy the home without demanding that minor repairs be made. Often, repairs can be made by home buyer, or contracted to be made by the home buyer,for much less money than the home seller who would add to the price for making them prior to the sale of the house.

-Don’t Waste Time
If you encounter a seller who will not negotiate the price of the house, the chances are good that he does not really want to sell the house, and is just trying to find out how much he can get for it.

-Don’t Make “Low Ball” Offers
Do not waste the seller’s time by making an offer to buy the home at a price that is drastically reduced from the range of the neighborhood selling prices. You have to be realistic about home buying negotiations so as to not waste anyone’s time, especially if you plan on buying a home well below the offered price.

- Don’t Accept a Higher Offer Than You Can Afford

Home Mortgages are a crucial component of buying a home, and accepting a higher offer than the one you can afford can put an unnecessary strain on your monthly home mortgage payments. Consider other costs like homeowners insurance and avoid making the most common mistakes home buyers make.

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You may also like to read:

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  2. What is a Home Mortgage?
  3. What is a Starter Home?
  4. Should you buy a Home or a Condo?
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