How To Negotiate To Your Advantage
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Negotiation, when performed properly, can be an effective tool. Using it correctly can end up saving you hundreds or even thousands of dollars. When it comes time to make an offer on a house, make sure you have all your ducks in a row. The negotiation process may very well be the most important aspect of buying a house.
It's imperative to ask the seller why the house is up for sale. The more you know about the seller's motivation the stronger your negotiating position becomes. Make sure the reason the house you are thinking of buying is being sold for a sound reason. Certain sellers need to move because of job relocation. Some sellers can be classified as "motivated sellers" due to a divorce, or they have already purchased another home and they need to sell their existing home quickly.
It is important to look out for your interests, and not to over pay for a house. But the other side of that coin is making sure you consider the seller's interest as well. There is a fine line between getting a good deal, and insulting the seller. This can sour the deal and fix it so that your initial offer is not only turned down, but future offers are ignored altogether.
The definition of negotiation is "to discuss to bring about an agreement." Both parties must agree on the deal, or there's no deal. And both parties need to benefit in order for the agreement to be successful. You should be savvy, but polite. Getting pre-approved for a loan by your mortgage lender prior to looking for a house can help eliminate any confusion on whether or not you can even afford the house. Make sure you and your partner discuss ahead of time the most you are both willing to spend. Buying a house is stressful enough without adding to it the pressures of disagreement amongst yourselves.
Make sure you get an inspection from a reputable company prior to closing on your house. If you are unaware of whom to use, your real estate agent usually has one or two people whom they really trust, and they can get you in touch with them. If you are buying a pre-owned home, be sure to add up the costs of potential updates. You can insist/negotiate that a seller fix these prior to you signing the purchase agreement and this can help save you dollars as well.
By knowing what you are willing to spend, and what you are approved for ahead of time, you can help everyone involved save time, money and undue stress. Informed negotiating can be a rewarding experience if you do it right. Knowing the seller's motivation is key as to how you should position your offer. If you are in doubt, you can always ask your real estate agent his/her opinion. REALTORS® have been in the business a long time and can help save you some grief, making real estate transactions a wonderful experience. Learn to rely and trust their expertise.
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