Buying Real Estate: 3 Tips on Being a Better Negotiator – Our Guide
Not many first-time home buyers know that they have plenty of haggling power when buying real estate. This leads to many missed attempts to reduce the initial selling price of a property. Thankfully, you can be a more assertive negotiator by knowing more about the real estate industry.
How to negotiate in the real estate market
Finding the perfect home is just the first step to making sure that it will be yours. You now have to prepare yourself for rigorous negotiation sessions between you, the seller, and their real estate agent.
If you want to be a savvier home buyer, here are three negotiating tips you should know:
1. Learn about your local real estate market
The best way to leverage your position as a home buyer is to understand the local real estate market. Specific real estate sectors will have several key differences that will help you defend your stance. For example, property listings in a buyer’s market are higher in number than the pool of potential buyers. This makes you a valuable lead that most home sellers aren’t willing to lose, which gives you more power to haggle closing costs.
In contrast, the seller’s market will be trickier since more buyers will always be in this niche. As a buyer, the advantage you have is that sellers want to close a deal as soon as possible. You can secure the property against other potential bidders if you act fast with your financing, appraisal, and inspection.
2. Analyze your seller’s history and property
Besides researching your market, you should also gather as much information as you can about the seller and their respective properties. You can use it to gain leverage when your seller is giving you an offer. For example, a seller who has been trying to sell a property for months may be more open to tightening the schedule for closing a deal. Knowing more about your seller and the property you want to buy will help you determine the actual value of what they’re selling compared to other listings in the market.
3. Be open to compromises
While haggling for your proposed price, you may receive offers for a compromise. This is already a win for you as a home buyer if a seller is willing to adjust their property value. If you’re both working with a real estate agent, you should ensure that your demands are clear and justifiable. Remember that you shouldn’t push too much when haggling down your prospective home. If the property has a good placement in the market, other buyers may outbid you.
It’s crucial to consider your seller’s options when negotiating for a better deal. Keep in mind that there are many ways to cut down your payment without reducing the original price. You can settle on liabilities for necessary repairs, renovation costs, or association fees to cut down your overall expenses.
Buying a home is a considerable long-term investment, which is why you should know how to get the best deal possible. Entering the real estate market as a buyer requires you to do diligent research on market trends and negotiating etiquette. If you’re not too confident with your negotiating skills, you can partner with a real estate agent to increase your chances of getting a better deal.
Educating yourself on the property market you want to enter will help you become a better buyer. Want to learn more real estate tips for buyers in Edmonton, AB? Browse through our blog today to read about other informational articles to keep a competitive edge in the real estate market!