Successful negotiation is critical to a real estate deal. Buying a home is not as simple as making an offer and waiting for that offer to be accepted. The negotiation process can go for weeks before both the parties find a middle ground.
As a homebuyer, you expect to have a good deal, but you won’t get it unless you know the art of negotiations.
A market with an extensive inventory gives you more room for negotiation. However, the following strategies will help you bargain in a market where there’s a shortage of inventory:
Find out the Reason of Selling
Sellers who are in some urgency or have a shortened timeline are more eager to make a deal. So, try to find out the reason why the seller has listed the home.
Ask questions to the listing agent to find out if the owner already has a new place and wants a quick closing. Maybe, the home is on the market because the seller will use the money to finance another home. Sometimes, the owner wants a quick sale because of a significant change in personal life. The more you know about the seller, the better strategy you can make for the negotiation.
Research about the Property
A few hours of digging into the public records and online real estate listings such as Realtor, Redfin, Trulia, or Zillow will give you certain leverage in this negotiation game. Gather information about the property and the neighborhood to determine the real value of the home.
Besides, try to find out if the house is in foreclosure or if it has been on the market before. This information will help you propose a better offer.
Do a Home Inspection
Any defect in a home gives the buyer leverage. Contact a professional home inspector to find out if the home has any major defect such as a leaky roof or faulty plumbing system. You can use such a costly defect to either lowering the home price or deducting the repair cost from the total price.
Keep Your Composure
Freshly listed homes usually get the highest attention from potential buyers. A good home is supposed to be sold within 30 days. The ones sitting longer than the period start losing their appeal.
So, just wait patiently until the initial hype is over. Sellers also don’t like being approached by new buyers all the time. So, it’s normal for an owner to lower the price after a given period.
Deal like a Professional
Maintain a professional attitude throughout the negotiation process. Respond to counteroffers on time, keep regular contact with the listing agent and take the process more seriously. Don’t do anything that makes the seller think that you are not reliable.
If you are sincere and do your homework, you can easily make winning strategies to break a negotiation stalemate.