There’s a lot involved in negotiating a property purchase.
That’s why it’s important to have a checklist. A checklist of what you want to get out of the deal, as a buyer. Here are…
14 Ways To Negotiate A Home Purchase
The lender will be expecting the house you buy to appraise for the price you are buying it for or more.
1. Ask your Real Estate Agent to do a comparative market analysis. This way you are aware of the home values in the area you are buying. This will give you an idea as to whether the seller’s asking price and, or your offer is realistic. The seller has an agent who is doing a market analysis the for the seller.
2. You will also want to know how long the property has been on the market, and if any price reductions have occurred during that time.
3. Make sure your Real Estate Agent is working for you to represent you.
4. You also want to know that you are working with an agent that is experienced in representing home buyers. Not all agents have the ability to provide strong representation for a buyer.
5. If you have not yet selected a Real Estate Agent to represent you, my team and I can provide you with contacts that have a proven track record of success with our clientele.
6. Remember a good deal is mutually beneficial.
7. Listen attentively to determine what is important to the seller. You can use this information to leverage what you want out of the deal at some point along the way. Many sellers usually have a wish list of what they want out of the negotiation.
8. Find out if the seller has a deadline. Perhaps they have already purchased their new home, or have to relocate because of a commitment to a new employer.
9. Find out what the seller’s current mortgage balance is and use this to your advantage. Also…
10. Find out what the seller’s bottom line is and how much room there is to negotiate. If possible…
11. Ask if you can negotiate that the seller pays for your closing costs. Marc Giles can explain how much seller concessions are allowed with various mortgage loan programs.
12. On the other hand, if the seller wants to move because they can’t manage upkeep on the home, or don’t want to invest in repairs, these problems will be passed on to you. Ask Marc about a renovation loan. Marc Giles can arrange to add money to your loan to do repairs and upgrades to the house. Sometimes you can get a better deal if you agree to take the house with the deferred maintenance.
13. You would also want to know if the seller is planning this move because there are problems in the neighborhood. Take a walking tour of the area and ask the residents what the neighborhood is like. You can also ask the local police department about the crime rate, or check the local newspaper for crime listings. Don’t be afraid to ask questions.
14. When the seller is intent on getting their way on a certain point, make sure you are getting something in return. Typically the built-in amenities such as the dishwasher and garbage disposal will stay with the home.
You can negotiate other items that would normally be associated with a home purchase in exchange for something that ranks high on the seller’s wish list. Keep in mind that personal property like a lawn tractor or flat-screen television cannot be included or financed. Be prepared to split the difference so everyone involved is satisfied with the negotiation.
A win-win situation for both the buyer and the seller is critical to a smooth close.
Keep it simple and be direct, but above all, know that my team and I are here to assist you.
Call me direct if you have any questions Marc Giles (917) 721-5415