Back Home6 Tips to hone your negotiation skills when buying a home
Real estate success hinges heavily on one’s ability to negotiate the best possible deal. But as the saying goes, that’s easier said than done. It probably doesn’t help that the challenge is compounded by the fact that there are several factors to consider in any type of scenario.
How do you prepare for each one? And how do you know when to stand your ground or put forward a counter-offer?
Whether you’re buying a house in Texas or elsewhere in the country, make sure to apply the following tips.
Tip #1: Know the seller’s motivations for selling
A seller’s motivations for selling can give you an idea of the terms that may come easy and the ones that you may have to fight harder on.
If they’re selling the house due to job reasons and are looking to meet a tight moving deadline, you can put forward an offer that syncs well with their ideal timeframe. This can put you in serious consideration over other competing buyers — especially helpful if you want to stand out in hot markets.
Tip #2: Don’t be afraid to probe further
Asking the right questions is key to succeeding in the negotiation phase. Gaining more information about a seller’s terms and preferences is a must-do before you make any serious moves during the home buying process.
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or instance, you can ask about the previous price of the home. This gives you a glimpse of how the local market has gone up or down since the seller first bought it. Depending on the state of the property, you can also ask the seller if they’re willing to cover costs for certain repairs or inspections.
Tip #3: Identify which contingencies you can live without
In today’s competitive real estate market, it’s not uncommon for some buyers to give up certain contingencies to sweeten the deal. For example, some may see the financing contingency to be of little use if it isn’t their first property purchase and they’re working with a long-time lender.
However, be careful when you decide to employ this strategy. Waiving the home inspection contingency, for instance, may cost you more money when you discover that electrical or structural issues plague the home you just bought. The same holds true when you waive added mold and water system inspections.
Make sure that you’re still on solid footing if you choose to waive certain contingencies.
Tip #4: Never make decisions in the heat of the moment
It’s natural to feel a range of emotions throughout the home buying journey. After all, purchasing a home is one of the biggest transactions you’ll ever make.
That said, emotionally charged decisions can have catastrophic consequences. It’s important to always be even-keeled when making negotiation moves.
This is where hiring a real estate agent can prove to be quite useful. These professionals can help you stay grounded and focused on key outcomes that will net you a solid deal.
Tip #5: Compromise isn’t a sign of weakness
Buyers and sellers often reach a stalemate, with either side unwilling to budge on specifics like final price, closing costs, and additional repairs. You may be ready to look elsewhere when faced with that situation, but you don’t always have to. Depending on your context, finding the middle ground isn’t necessarily a bad thing as long as you’re meeting your real estate goals.
If the advantages of buying the home outweigh the disadvantages, it may be worthwhile to strike a compromise with the seller. Whether it’s on price, contingencies, or other concerns, identify what type of compromises you’re willing to settle with to get your dream home.
Tip #6: Lean into your agent’s expertise
Agents are invaluable in the negotiation phase. With years of experience and insight in the market, these professionals know exactly what to look for in a deal and can flag major issues that are detrimental to your interests.
And if you’re buying your first home, you never have to worry or second guess yourself if you work with a seasoned agent. With a seasoned agent by your side, you’ll know when to compromise, ask razor-sharp questions, make decisive moves, or move on from a listing.
If you’re in the market for a new home in Texas, get in touch with professionals from Berkshire Hathaway HomeServices Caliber Realty. With the team’s decades of experience in residential real estate, you’ll receive top-tier home buying advice and timely updates on market trends. Contact 979.694.8844 or send an email to sales(at)bhhscaliber(dotted)com to get started.
References
https://www.texaslending.com/2017/02/10/8-negotiation-tips-homebuyers/
https://www.har.com/blog_62767_how-to-negotiate-your-best-house-buy
