Our Top Tips On How To Negotiate House Prices!
So you’ve finally reached the personal milestone of buying your own home. You may be on your own or you’re with a partner. Regardless, you’re super psyched as you set out to find the home of your dreams. Then there it is and it’s everything you’ve imagined — from its perfect proximity to the beach down to the size of the kitchen, and the perfect windows that let all that glorious light in… But the price isn’t exactly what you had in mind. In fact, it’s worth a few thousand of dollars more than what you are ready to spend. Before you begin to negotiate house prices, keep these tips in mind:
Research comparable sales
Knowledge is power. The old adage rings true when buying property. Meet your agent armed with information about the property prices and demand in the area. Agents are more likely to be honest and upfront with you regarding sales history and performance when they know that you know what you’re talking about.
Know your agent’s rules
How does your agent operate? Is he in talks with other buyers? Will he call the vendor right away? What’s his strategy in handling the offer and counter offer? The point is to know if you are confident with how he plans to negotiate before going into the battlefield. This way, there won’t be a lot of surprises and you will know which of your cards will be played.
Know the vendor
Whether or not you will be using an agent, knowing why the vendor is selling will help you present a better case and know how to negotiate the contract.
Negotiate the contract
It’s not just the property price that you can negotiate but auction contract terms, as well. Though there is no cooling-off period after an auction, contract terms such as deposit amount, settlement length, fixtures, circumstances surrounding current tenants among others, can still be negotiated.
Should the seller agree to the changes proposed by the buyer and that particular buyer becomes the successful bidder, the vendor will inform the real estate agent of the amendments agreed upon which will be applied to the contract before it is signed.
Learn the law about buyer negotiations
In an auction, if one buyer manages to negotiate changes in the contract, these changes must be made available to everyone else. It’s a pretty basic law that aims to level and keep the competition fair, however, it’s still best to check if it applies to your state.
That is if you find the right property. If you find the property that meets all of your qualifications and you’re serious about acquiring it, get rid of all the bargain hunters quickly by bidding high at the beginning of the auction. This shows confidence and communicates how serious you are.
Pre-approve your finances
If you are buying in an auction or planning to waive the cooling off period, you are pretty much required to get your finances pre-approved. This also safeguards you and your deposit in the event that you need to back out of the contract due to legal reasons like if the seller did not comply with vendor disclosure statement requirements.
Know when to walk away
Selling your property can be a quite emotional experience for some and their attachment to the property exaggerates its price. Likewise, buying a property can be equally sentimental –you might be tempted to give in even when the price is above what you can really afford just because the property in question defines the home of your dreams. Be rational when assessing the value of the property. Keep an open mind that there will be other properties that will suit your needs.