Arm yourself with the skills you need to secure the best deal
Buying a house is perhaps the biggest investment you’re going to make in your lifetime. And it goes without saying that you not only want to find the right property, you also want to get the best deal. But if you’re not a skilled negotiator (most folks aren’t), you could end up losing the house to another buyer or end up paying too much. These tips can point you in the right direction:
1. Treat it like a business deal
While you may have fallen in love with the property and you are already picturing your family living there, it’s important to keep your emotions in check. Instead, treat the purchase like you would any other business deal, with a level head and without emotional attachment.
2. Be reasonable
Too many deals fall through because buyers offer a price that’s way too low—thinking they will have the opportunity to counter higher over and over until the seller accepts. But the fact is, if this house is so desirable to you, it’s likely there are other buyers out there who feel the same way. Instead of lowballing yourself out of the ballpark, make an offer that’s reasonable.
3. Do your homework
How long has the house been on the market? What are the comps in the neighborhood? Knowing exactly what’s going on and the history of the property is key to making an offer that they’ll accept and that will be within your budget. If the house has been listed for several months, if the price has been reduced already, or the seller has had a few deals already fall through, they may be more motivated and willing to negotiate or to take your reasonable offer.
4. Get the scoop on the seller
If possible, find out the seller’s motivations. Are they looking for a quick sale because they’ve already purchased a new home or they’re moving across the country for a job or family obligations? Understanding why the homeowner is selling can give you leverage for negotiating a better price.
5. Offer them cash or other perks
Cash offers are always appreciated by sellers and sometimes allow you to get a better price. Other ways to sweeten the deal are to offer to accept the house as-is, commit to a quick inspection and closing process, or have your pre-approved mortgage documented so you can show them there won’t be any financing issues.
6. Don’t hesitate
If you offer a price and the seller counters, waiting around to make a new offer could give another buyer the opportunity to jump in and steal your thunder. Be sure to respond quickly when this happens, and if you’re working with a realtor, discuss your plan ahead of time so he or she knows how much you’re willing to raise the offer and can get it in expediently.
When it comes to negotiating the best price for your home, remember that if you don’t ask, you can’t expect to get any kind of a deal. It’s also a good idea to keep an open mind and realize that if the seller isn’t budging, and the difference is just a few thousand dollars, you’re better off paying a little bit more for the home that you truly want. And of course, it’s important to trust your realtor to guide you on what you should offer, how high you should go, and when to walk away.
If you’re in the market for a new home, turn to No Limit Real Estate to help you navigate the entire process. We’re specialists in South Florida and in negotiating the best prices for our clients. Give us a call at 954.300.2525 or fill out our online contact form to start looking for your ideal property today.