Six Important Negotiation Tips for Homebuyers

You’ve finally found a dream house. But have you closed the deal yet?

When it comes to buying a house, the one thing you should know is that everything in the world of real estate is negotiable. Real estate brokers and developers tend to throw words like fixed price and no negotiations at you, but they aren’t being honest. Don’t get intimidated by them. Keep these 6 tips in mind to sail through the negotiation process with your agent or seller.

1. Know the Real Estate Market

Real estate is a huge market, and knowing everything can get a little difficult. But, being well informed about the general property trends in the market, such as property prices in a neighborhood, can give you an upper-hand in your negotiations with an agent or a seller.

2. Always Remember, It’s Business

In business, you don’t just look for the best. You also look for what’s most profitable. Sometimes, a property might have all that you’re looking for. But showing your desperation towards buying it can burn a hole in your pocket. Staying calm and composed in such situations is the best way to set up a table for negotiations.

3. Let the Seller Make An Offer

While being the first one to start is considered ideal in debates, it is just not the case with real estate dealings. As a smart negotiator, you should always let the seller make an offer, so that you can decide on a midpoint. There are chances that the first offer made by the seller turns out to be better than what you were going to make.

4. Try to Identify the Seller’s Motivation

Everyone has a motive to sell a property. The motives might be financial, death in the family, job related, or other such family situations. Ticking on a seller’s motive can help you decide on a negotiation approach. If the seller seems desperate to sell, you could get the property for a good price. However, if you find that the seller is in no hurry to sell the property, your negotiations might not be as effective.

5. Show Your Interest and Give Them a Date

Make sure to clearly show your interest in buying the property at the offer price you’ve made. Close the discussions with giving the seller a deadline. Communicate to the seller that any delay in responding back to your offer might cost him or her a prospective buyer.

6. Be Quick With the Counter Offers

Timing is essential in bagging good real estate deals. If the negotiations are completed and the seller has given his or her final quote, too much delay in responding would allow other buyers to step in. This will only make you a part of the bidding war. It is advisable to avoid such situations.