Houses are the largest purchases the average person will make in their lifetime. Some people may be lure by aesthetics and taste and pour hundreds of thousands of dollars into the decision only based on how the house looks. Unfortunately, many people overpay by thousands, losing money they could be putting into furnishing and decorating their new home. Here are the top six ways to save money while negotiating and ensuring you get the best price possible. Negotiation is the most important of the steps to buying a house.
Work With A Professional
This choice is the most obvious option, but it stands its ground! Realtors and real estate agents are there to help you buy a home in a way that makes you happy. They’re there to protect you from overpricing and ensure you don’t pay for repairs that aren’t your responsibility. They’ll help you talk down the price until it’s something more affordable for you.
Get Your Finances Ready
Be ready to pay for however much you can afford. Although having a mortgage prepared ahead of the purchase is a lot of work, it’s good to do it if you want to sell faster and cheaper. Having money ready, with no wait, will make you a more viable option for sellers. This choice allows you to barter easier, and hopefully, get a price that suits your wallet better. While you are getting your finance ready, don’t forget to think about mortgage insurance!
Have Comps On Hand
Collect some comparable homes that have sold for less in the area. Try to make sure they’re close to the home you’re bidding on; if you shoot too far out of your range, you could risk annoying the seller or looking like you’re trying to lowball them too far. Be reasonable, pick properties that are good comps and allow you to show that they should accept your lower offer.
Be Friendly and Personal
Don’t be curt or rude with the sellers. The best way to communicate is in a light and friendly manner, and if you have trouble with that, then the next best choice is to talk only through your agent. Your agent will be able to navigate tough decisions and bad offers until they can talk the seller down to a price that you can afford. Although you may think you save money if you don’t have an agent, you’ll lose money in paying the higher cost on a property.
Get An Inspection
Have an inspector walk through the house to check for any problems with it. If there are any issues, from water damage to settling, you can request a lower price or ask the seller to do the repairs before the purchase. You can save money this way, as well as ensure that the home you’re getting is in the best shape possible.
Try To Barter In Closing Costs
If you’re in a buyer’s market and are willing to be a little more assertive, talk to the seller to see if they’ll cover closing costs. A more motivated seller will work with you to sell their home in any way possible. This option can save you around 15% of the house’s final price, which will take a huge chunk off what you have to pay.
No matter whether you are searching for a condo, a townhouse or a house, the above suggestions are all valuable to negotiate for the best home price.