Some Tips That Will Help You Negotiate a Better Deal on Your Next Home
There is an old axiom in real estate, everything is negotiable. Is this really true though?
When you're in the market to buy a house, you're probably looking to score the best price and terms. In order to do that, you need to know when to start and stop negotiating. This process begins with being familiar with the market, right down to the neighborhood and even the street.Â
Also, market conditions play a crucial role in the process of negotiating a better deal. If the current market's inventory supply is greater than it's demand, there is usually more room for negotiation than if there's a shortage of inventory in the market and a higher demand.
Over the past year, the pace of home sales has quickened rapidly in many cities. This means that buyers have a little less wiggle room than they did before. However, this is not to say that there are no more great deals to be found.
Below are some useful tips to employ when trying to negotiate a better deal for your home:
1. Get your finances in order before you start looking for a house. The offer is much less persuasive if it does not include a mortgage preapproval. Many seller's will not show their home unless you're preapproved. Sometimes the preapproval process can take several months.
2. Base your offer on the home's value, not its list price. Recent sales in the neighborhood will give you and your agent ammunition for when it comes time to negotiate the price. If a home is priced at or below its market value, you're unlikely to get it for less. If the home is priced above market value and it has been on the market for awhile, a lower offer backed up by sound market analysis may get you the price you're looking for.Â
3. If you see a home that you like, be prepared to move quickly. In this market, when properties are listed, they go very quickly. If you're in a competitive market, it is a smart move to make your first offer your best offer, as there are always people who want to make a lower offer.
