Home Negotiation Tactics For First-Time Homebuyers
Ideally, you won’t need aggressive home negotiation tactics the first time you buy a house. Imagine, you’ll look at a few houses online, find your dream house in your preferred price range, make an offer, have it accepted and start packing. But it doesn’t always happen that way. In fact, it rarely does!
So what home negotiation tactics should first-time homebuyers use?
It’s always best to let your real estate agent do the actual negotiating, but here are some things you can do to stay ahead of the curve!
Make sure your pre-approval is ready to go.
If you are submitting an offer without a pre-approval against other offers that do, it doesn’t take an educated person to figure out which one is going to get accepted. (Hint: It’s the one who can back it up with a mortgage!)
Know what you can afford and what you’re willing to pay.
Hopefully, those two ranges are the same! However, especially if you’re house-hunting with another person, it’s important to agree on a price that you will not go over no matter what. Carefully consider the maximum price that you (and your budget) are willing to go to.
Know the area you’re looking in really well.
Your real estate agent should know the area very well, as should you. Don’t use a friend or family member as your real estate agent - go with a professional who knows which neighborhoods you want to live in and the houses in those neighborhoods that match your price range.
If you have a friend or family member who does house inspections or is a reputable contractor, bring them along to the open house or during a walk-through.
They will help you spot serious, visible issues with the house, which can strengthen your initial offer.
Appeal to the sellers’ emotions.
Your realtor may be able to find out more about the sellers and their history in the home. If you use this information and write an “offer letter,” it might be accepted - even if it’s lower than the asking price because of the emotional connection you forged with the sellers. Negotiations are not always just about money.
Work according to the seller’s timeline.
As a first-time homebuyer, you don’t have to worry about finding a new home while selling your existing one. Allow the seller some extra time to find a new home. In some cases, it may be prudent to offer the seller the chance to rent the property back for a short, defined period of time.
Don’t get emotional.
While buying a new home may be your biggest dream, it should be considered a business transaction. At least, until you have the new keys in hand! The biggest advantage you have with your offer is the ability to walk away at any time during the home negotiation tactics if they won’t budge to meet you somewhere in the middle.
If you and your family are preparing to sell your home or are getting ready to start house-hunting, contact the Fairfield Team and we can help you get started, coach you through home negotiation tactics, or answer any questions about the Omaha housing market!