Home Buying Negotiation Tips You Need to Know

When it comes to buying a new home, there are many things to think about: from home inspections to financing, purchasing a home is a multi-faceted task. One thing many homeowners aren’t prepared for, however, is negotiation. Seldom is buying a home ever as simple as signing your name on the dotted line. Instead, there’s often a round (or several) of negotiations that go back and forth between the buyer and seller before the deal is closed. By knowing how to negotiate more effectively, you streamline the purchasing process from start to finish and help ensure that you wind up with the home of your dreams.

Negotiation Tips for Buying a Home

While you don’t have to be a professional wheeler-dealer to secure a successful home purchase, these negotiation tips will certainly help:

1. Respond quickly

When you put in an offer on a home, you’ll likely be met with a counteroffer. As a general rule, it’s wise to respond as quickly as possible to these. Delaying more than is absolutely necessary leaves room for another buyer to swoop in, which can easily create a bidding war and nudge you out of the race.

2. Use the correct communication terminals

If you have a question about the purchase process or the home itself, make sure you ask the right person. In the context of a home sale, the right person is always the real estate agent you’ve hired. Sellers and buyers don’t generally speak directly to one another during the sale process, largely because doing so creates a legally sensitive situation. Instead, let your agent field your questions.

3. Get pre-approved

When you choose to buy a home, the first thing you should do is get pre-approved for a mortgage. This is especially important in competitive housing markets. In the event that a seller has several offers on their home, yours will look much more persuasive with the benefit of pre-approval.

4. Don’t get too hung up on list price

While list price is certainly an important factor in negotiations, it’s far from the bottom line. Instead of focusing too intently on list price, base any offers you make on the home’s value, instead. Your real estate agent will be able to tell you what other comparable homes in the neighborhood have sold for, so you can have a good idea of what you can expect to pay for the home you like. Be advised that it’s rare to get a house that’s priced under market value for less than its list price, although price reductions are possible on homes that are priced above market value and have been on the market for a long time.

5. Ask for what you want

In order to get what you want, you need to ask for it. Things like repairs are common requests and buyers may be surprised to see what a seller is willing to do for them. Regardless of what you’re planning on asking for, though, it’s wise to assume that you won’t get it all and to be prepared for that from the beginning.

While buying a home may seem intimidating, these negotiation tips can help make the purchase process easier and more successful for you.