5 Negotiation Secrets Smart Buyers Use to Get Better Deals
June 22, 2022 | Posted by: Barbara Chong
Being a buyer in today's real estate market can be challenging. The market is very competitive right now, making the average buyer feel like it is impossible to secure a good deal. Luckily, some tricks can help you make an intelligent deal so you can achieve your dream of ownership.
Most areas are experiencing what is known as a seller's market. That means that sellers are entertaining multiple offers on their own and are seen as having the upper hand. However, experienced mortgage brokers know that you can still employ a few tricks to help shift the balance in your direction.
Of course, remember that a good deal starts with shopping around private lenders for great mortgage deals and ends with making a successful offer on the house of your dreams. Here are a few of the top negotiation secrets to help savvy and smart homebuyers obtain the best deals.
Bring the First Offer to the Table
It goes without saying that most homeowners are cautious about placing an offer on a home, but you can't wait too long if you want your offer to be accepted. At the same time, you don't want to oversell your interest in the home and make the seller think that they have the upper hand. Despite this fact, it is best to make your first offer while you are in-house and in-person so you can gauge their response. This is often a great place to start your negotiation and if you come in with a solid first offer increases your chance of winning the bid.
Remember Your Margin
It can be easy to get carried away with a bidding war, especially if this is the third or fourth house you have placed an offer on, and you are getting exhausted with the buying process. However, it is essential to remember that you will have to pay a mortgage based on the final bid you place. Therefore, you need to use concrete numbers when you bid instead of offering a range. Concrete numbers leave less negotiation room and help prove you are serious about what you are willing to pay.
Keep Your Questions Open-Ended
It is easy for a buyer or seller to waiver a bit when answers are oblique but harder when your questions are open-ended. This allows you to get a glimpse into where they might compromise and opens some areas where you can negotiate further. Instead of asking things like "What do you want out of this property>" try questions like "What are your future plans?" Understanding the sellers' needs helps you anticipate where or where not they may be able to compromise.
Remember that Price is not the Only Negotiation Point
Many home buyers focus on Price when they enter the negotiation table, but sometimes the price is not the only way you can save money. You may not be able to talk the seller down on the Price, but you may convince them to hire an exterminator, repair damage to the yard or fence, and agree to an earlier move-in day. Sometimes negotiating improvements will pay off more in the end than lowering the asking price.
Finally, when it comes to home negotiation, you must pay attention to every aspect of the experience to get the best deal. Alternatively, you can hire a real estate agent who will do this for you, but sometimes it pays to create a personal connection between you and the seller. Understanding the motivation of the seller and their goals can help you avoid roadblocks and reach a final sale price that works for everyone.