Learning how to wield the power of negotiation is an art form, especially when buying a home.
When you finally feel like you’ve found the right place for your family and lifestyle, taking the necessary steps towards claiming it can be intimidating.
No matter how you choose to make your transaction, buying a home is a large purchase, and there are many factors to consider before you agree to that final price and sign on the dotted line.
Now for the big question- what can you do to ensure that you are getting the biggest bang for your home-buying buck?
We’ve got the answers; all you need to do is follow along and take notes before you take action. Let’s get started.
#1. Do Your Research & Know The Market You’re In
Before you make that giant leap of faith and put in an offer, do your research!
A quick look around on the internet is a great way to find out what similar homes are selling for nearby and possibly even get a little history lesson on the one you are interested in.
A little research will give you an idea of the kind of market you’re dealing with, as well as a fair price range to work from when you’re ready to start the negotiation.
A lack of such knowledge could potentially cost you a lot more money than you need to pay, which is why it’s so crucial that you make fully educated decisions every step of the way.
#2. Choose a Reputable Home Inspector
The home buying experience is an exciting time, but don’t let the moment blind you from the possible problems that can arise.
Regardless of the home’s charming appeal, you need to make sure you do a little digging and choose a reputable home inspection company to check the house for issues thoroughly.
Unexpected repairs, replacements, and hidden damage can quickly become very costly, so using a good home inspector is crucial.
If problems are found with the home (pre or post inspection), you may have gained bargaining chips to take advantage of.
Although sellers don’t always accept these types of negotiations out-right, it may offer you a bit of wiggle room somewhere along the way, depending on the issue.
#3. Request a Home Warranty
Requesting a home warranty from the seller is a fairly common practice among real estate.
A home warranty plan could be a reasonably inexpensive way to ease the strain of unexpected repair costs if they were to arise after the purchase of your new home.
You can buy a home warranty plan yourself, but it never hurts to request that the seller covers those costs during negotiation.
#4. Forget About the Seller’s Price Tag & Negotiate Based on Total Costs
When looking to make an offer on a home, you don’t want to throw a number out based on the seller’s original asking price alone; you need to consider everything!
- Repair & Upgrade Contingencies
- Closing Costs
- Possession Dates, and so on.
These are all essential factors to calculate into your offer.
Unfortunately, someone will end up paying these costs no matter what, so it’s best if it isn’t you.
The key to buying a home without overspending all comes down to your willingness to do your research and negotiate properly with an experienced support system by your side; that’s where a REALTOR® comes in!
#5. Hire an Agent to Represent Your Interests & Strengthen Your Negotiation Power
All of the tips we’ve shared up to this point are great for structuring the best possible offer for your new home and pocketbook.
But, there is one invaluable step we’ve yet to mention; hiring an experienced agent!
Now that you understand the basics of negotiating, it’s time you partner with an experienced agent who has the knowledge and skill to dig up real bargaining leverage and guide you through closing successfully.
When you have a professional real estate agent on your side, getting the biggest bang for your home-buying buck becomes way less intimidating and much more enjoyable.
If you are looking for the perfect home (or maybe you’ve already found one), don’t put that offer in just yet; call Key Realtors today and partner with one of our agents to ensure you get the best deal possible on your new home.