You’ve finally found your dream home, but how do you get it at a price you can be happy with? Below we have compiled 5 essential guidelines to assist you in negotiating the best price for your dream home.
5 Essential Guidelines for Negotiating Real Estate Price
Understand That Negotiating Takes Time
In order to make the process less overwhelming, it is imperative that you understand that negotiation is not a one-way street; both parties involved should be satisfied with the transaction. Know that the end results should not only be beneficial for you but also for the seller as well. So you can expect to “give and take.”
Try to put yourself in the seller’s shoes. Remember that if you decide to relocate in the future you will be on the other side of the table. Seeing things from the seller’s perspective can also help you to understand the best approach. For example, ask yourself: Why has the owner decided to sell the property? Is the house in poor condition? How much will renovations cost? Focusing these factors can help you negotiate the best price.
Understand the Market
What you are willing to offer for the property is not the only factor worth considering. Real estate prices are greatly influenced by location and demand; the amount your competitors are willing to pay will ultimately determine how much you pay. Research and analyze the current market in your location by comparing prices for similar properties before you decide to offer.
Your dream home is right in front of you and you have the power to seize it. Remove all negativity and fears that you might have before you approach the seller. A positive, self-assured attitude is an essential key in negotiating.
Set Your Budget Limits
It is easy to step outside the confines of your budget in the real estate market. Purchasing a home can be very emotional, especially for first time home buyers. Always remember to set your budget limit and stay true to it.
Find the best method to present your offer to the seller. Should you present your highest offer during the initial stage of the negotiation? Or should you go in with the lowest, giving yourself more time room to negotiate.
If you get caught up in a bidding war, remind yourself that you have a budget that you cannot afford to exceed. If you do not trust yourself to do this, why not ask a friend or family member to help you through the process?
Make Realistic Offers
Making a ridiculously low offer in hope that the owner is desperate to make a deal will not often be beneficial to you. Be serious about purchasing the property and bid according to its value. This will save you the headache of a longer negotiation and the trouble of losing the home you dreamed of.
If you make an honest low offer, speak to the seller and get him/her to understand why you will not go any higher. As mentioned earlier, in situations where the property is in a bad condition and will need renovation you may be inclined to make a legitimate low offer.
Wearing the negotiator’s hat can be easier and more effective if you follow the right methods. By adhering to the guidelines above, you may receive the keys to your new home in a quick and painless manner. It is in the best interest of the seller to try to close off the negotiation as soon as possible. Therefore, it is up to you to play your cards right. Bear in mind that you will be able to withdraw your offer prior to their acceptance if a better property with a better price hits the market.