Having savings is very much important for people. In home buying, savings could mean more funds that can be directed towards improvements. Alternatively, it could also mean more funds to cover for personal expenses. For some, savings is used for investment.
That is why in purchasing homes, people would always resort to negotiation. It is done in almost all of transactions and with the right approach; buyers can walk away with their dream house at an economical price.
More about Negotiating Home Prices
Negotiating home price is not easy. Since the buyer and the seller have conflicting interest in terms of money, it is rare for a negotiation to be over quickly. In addition, certain legalities are involved. These things need not to be taken lightly and should be carefully examined to avoid the possibility of being ripped-off.
As a buyer, you have to pay attention to certain details so that you can convince the seller to lower down their prices. Here are some of them:
Let us talk about the price
Once you get hold of the price set by the seller, you should start asking yourself, “How much am I willing to pay”? You need to determine the highest and the lowest price that is acceptable for you. At least you have bidding options in case of haggling.
As a basis of comparison, you can ask your real estate agent to give you a comparative market analysis. Study them so that you will be able to reason with the seller.
Evaluate the house properly
Never buy the house without inspecting it. There are usually two kinds of inspection involved. First is ocular inspection (usually done in open houses). The second one is where you hire a professional to perform an extensive inspection to spot concealed defects of the house.
When these are uncovered, you may want to discuss this with the owner. Sometimes, they increase the price to cover for the repairs. However, you can actually assume the responsibility in exchange for lowering the price.
Know the seller
It is also important that you fish out information about the seller. One in particular is determining why he or she is selling the house. If the homeowner is in a hurry to let go of the property, you may want to think of options where she will be left with no choice. One tip though, always start with your minimum offer. Do not show all your cards right away and always reason which sounds beneficial to owner.
You probably need a real estate broker. Therefore, choose them wisely. You really have to screen them to protect your interest. Put in mind that these agents are also concerned about their commission. If you have a goal to lower the price, it would be conflicting to their aim to get a higher commission.
You also need to be familiar with the state laws. You will definitely need this especially on evaluating contracts. If you think real estate is not really your thing, go ahead and hire a lawyer.
Keep in touch
If there are changes in decision, always inform the seller. You can set appointments to meet up and talk about the transaction. Remember, negotiating is better done in person rather than through phone.