How to Negotiate As a First-Time Buyer

Have you found the home of your dreams? If so and you’re like most first-time buyers, you won’t stop at anything in order to beat out potential competitors – including overpaying for the house.

Negotiating can be intimidating, but it’s important to make sure you don’t let emotions get in the way of making a wise investment. Even when the real estate market is booming, more often than not, you’ll still be able to negotiate with the seller on the price, closing date, or certain appliances.

So, before you make your offer, consider these tactics on how to negotiate as a first-time buyer.

What to Know When Negotiating As a First-Time Buyer

Negotiating tactics don’t have to be scary. Here are some things to consider for your first home purchase.

Know What You’re Able to Pay

This might seem like a no-brainer, but be sure you know exactly what you’re willing to pay before making an offer. If you’ve set a number at $300K, be ready to pay no more than $300K.

On the other hand, knowing what you’re able to spend will ensure that you won’t kick yourself after refusing to pay $3,000 more for your dream home – even if you had it in your budget.

Show You’re Enthusiastic

Your best poker face at the open house will no longer cut it. In today’s hot real estate market, many sellers are looking for an offer letter along with your bid. This is your chance to sell yourself and really tug at their heartstrings. Emotional connections can win a seller over, even if your bid is lower than the other competitors.

Set a 24-Hour Time Limit

When you make your offer, be sure to set a 24-hour expiration date on how long it’s valid. Doing this will eliminate competing offers. The longer a seller sits on your offer, the more time potential competitors can make their move.

Bring a Home Inspector to the Open House

If you know your dream home is in high demand, have a home inspector tag along to the open house. They’ll be able to give you a dose of reality on the home’s condition before you fall head over heels. Plus, if you still love the house, you’ll be able to waive the home inspection when you go make an offer.

Know When to Walk Away

Don’t be discouraged if you lose out on your first negotiation. In fact, it’s very common in today’s market. What’s even more common is finding another house you love more than the first.

It’s better to walk away than bite off more than you can chew. The key to a powerful negotiation is bailing out when you’re unable to get what you want. That’s why it’s so important to know what you consider a great value before you begin the process.

Negotiating As a First-Time Buyer Is Easier Than You Think

Don’t let negotiation tactics scare you away from buying the home of your dreams. Familiarize yourself with the market, be yourself, and know when to walk away. Before you know it, you’ll be on your way to owning you first home.