Our Top 7 Negotiation Tactics For Home Buyers
Negotiating for a final price on a home is often one of our clients’ least favorite parts of the process. Asking for things to be fixed, for concessions, and seeing their costs get driven up can be nerve-wracking to say the least!
So what can you do to make negotiations easier when you’re buying a new home?
Be prepared to walk away.
Even if you’ve been hunting for your new home for months and you REALLY want this house, be prepared to walk away. Having this mindset will make negotiations much easier and give you the upper hand. Sellers will be invested in the home that they’ve built or lived in for years.
Know your bottom line.
Or, more accurately for home buyers, your top dollar. Your realtor will guide you through an educated initial offer, but you’ll need to know exactly what you (a) can afford, and (b) what you’re approved for when it comes to your impending mortgage. Hopefully, you won’t hit your very top dollar or stretch your budget too much, but knowing this number in advance will insure that you don’t go over it during negotiations.
Ask your realtor to get more information from the listing agent before you submit your offer.
Some important questions that can be asked are:
- How long (total) has the property been on the market? (Sometimes there are short “breaks” on the listing when it expires. Find out how long it’s REALLY been up for sale.)
- Are there any other offers on the table? Any serious interest from other potential buyers?
- Is a quick closing an option? This can help you gauge if they’ve already found a house or they still need to find one.
- Has the seller received any offers that they’ve rejected?
The more information your realtor is going to uncover during these “chats” with the seller’s agent, the better you will be prepared to start negotiating. Remember, information is power!
Consider a concession-free offer.
Instead of including closing costs, home warranties, title insurance premiums, and other miscellaneous costs that drive down the final price, lay out what concessions you’re not looking for and offer a “sales price” with no concessions.
Make sure you respect the seller by doing what you say you will.
This includes responding on any issues or to any counter-offers they may send over. Respond in a timely manner and by any deadlines they set out. Show integrity and it will pay off in negotiations.
Maintain your objectivity.
Yes, we’ve already included being prepared to walk away. But this is important enough to use twice. Maintain your objectivity in negotiations. Don’t get so wrapped up in the back-and-forth of negotiations and every little detail or concession that you forget that you can walk away.
Our top tip for negotiating to buy a new home?
Work with us! The Fairfield Team is adept at negotiating for homebuyers. It’s important to work with someone who does this as a career every day. We do!
Want to keep reading our tips for buying a new home?
- 4 New Year’s Resolutions To Help You Buy A Home In 2018
- Nine Tips For House Hunting Over The Holidays
- Top 10 Ways To Tank The Closing On Your New Home
If you and your family are getting ready to start house-hunting for your new home or are preparing to sell your home, contact the Fairfield Team and we can help get you started or answer any questions you may have about the process!