Buying a home can be a stressful time for both first-timers and seasoned veterans. One of the biggest concerns that keeps homebuyers up late at night is whether their offer is high enough or if negotiations are working in the buyers' favor.
Some homebuyers tend to overdo their negotiations and others under negotiate. As a homebuyer, you have to have a middle ground that helps you get closer to your dream home. Here are a few tips on how to improve your negotiation strategy:
Know the math
If you want to be a good negotiator, you need to know all the math that is involved in the homebuying experience. This doesn't mean you have to sit at home and practice equations, but you should know different interest rate totals for the buying price before you make a final decision, U.S. World and News Report stated.
Paying $3,000 more for your house could be just a few extra payments, and, in the grand scheme of things, arguing over this could cost you your future home. While a few thousand dollars might seem like a lot, don't focus too much on getting your exact price range unless you're ready to pass up homes you're set on. Before you enter a negotiation, simply do the math for each side and have that information as a nice card up your sleeve if the seller isn't budging.
Try not to get too invested
When making any major purchase, it can be easy to dive deep into your savings account to afford the exact thing you want. However, you should always keep a clear and level head - especially when you're buying and negotiating a home. Garratt Hasenstab, manager broker at Verdigris Group, recommended staying calm through the entire process, according to Trulia.
"This is business, simple as that," Hasenstab stated. "There is no call for emotion. Rational thinking, business skill and negotiation skill are what it's all about."
Hasenstab also suggested getting more financial information on whom you are negotiating with so you can better understand where he or she coming from with his or her request.
"Make sure you're ready to move fast if you're able to get the home at the price you want."
Don't be afraid to challenge your agent
Real estate agents are paid to get you the house you want for the best price possible. There's no reason why you shouldn't encourage them to stay up to date with potential homes and constantly keep you in the loop, Front Door reported. You want to find someone who is just as enthusiastic as you are in getting your next home. If your agent doesn't share this same passion, then your negotiation process might be deemed unimportant by the seller.
Be ready for everything to happen quickly
Many homebuyers will tell you that, in some circumstances, the buying and selling transition can go at the snap of the finger. To better negotiate, make sure you're ready to move fast if you're able to get the home at the price you want. If you wait too long, the property could be gone by the time you look back.
Brendon DeSimone, an experienced real estate broker in New York, told U.S. News and World Report that you should always make your first offer your best offer because the market moves so quickly. The broker said taking too many chances might have you looking for much longer than you want.
"There will always be people who want to make a lower offer," Related Realty Broker Sheila Rugege Dantzler said, according to the source. "When they miss out on the first or the second or the third property, they learn their lessons."
To get more tips on how to improve your homebuying process, visit one of our expert staff members in a branch near you.
For more information about smart ways to manage your finances, contact Landmark Bank.
Back to Blog