10 Tips for Making Home Buying Negotiations Go Smoothly

When you’re in the market for a new home, there’s nothing quite like the search for the perfect property. It’s exciting, addicting, and fun. But once you finally settle on a property, that’s when the real work begins.This is when the negotiations phase starts, and for most, this is the most frustrating and stressful part of the home buying process. But it doesn’t have to be so worrisome. Here are ten tips that you can use that will help make your home buying negotiations go smoother.

You want to be on the strongest ground possible when you’re negotiating for a home. So before you even start making offers, you will want to get your finances in order so your mortgage lender won’t have any misgivings about your loan before you close the deal.

A property’s list price is the price the owner is asking for. This is almost always higher than what the home is actually valued at. Find out the actual value for the home, and then base your offer on that amount.

If you’re shopping in a competitive market, then make your first offer your best offer, or you could miss out because homes don’t last long once they hit the market. Therefore, you want to be ready to move quickly. If you’re anticipating a bidding war for a home, then let the other party bid first so you know what number you have to beat.

When you’re heading into negotiations, it’s normal for most people to start talking. But you’ll want to avoid this temptation and instead, try listening. If the seller has a counteroffer, listening will help you identify their reasoning and their unique situation. This information will help you and your real estate agent to determine your next move.

If you learn that you are going to be entering into negotiations with the seller, ask your Realtor for as much information about them as possible. For instance, why are they selling? Are they moving for a particular reason, like for a new job? Is the seller in financial trouble and trying to avoid a foreclosure? Any information you can gain about the seller and their reason for selling will strengthen your position at the table.

You want to know as much about the house and property as possible before you start negotiating. There may be problems that need to be addressed that can really impact your buying decision.For instance, if the roof has a leak, that information can be used to help reduce the amount of your offer because you’ll have to replace the roof after buying the home. Expensive repairs like this are why it is so important to get a home inspection before negotiating, or even better, before making an offer.

Doing a public records search on the owners and the property can provide you with details like whether or not the home is headed to foreclosure or if the owners have recently filed for divorce. Use a resource like Homes.com to find out when the property was last on the market and how much it sold for.

In every negotiation there is give and take. You’ll win some, but don’t expect to win them all. Pick the things that are most important to you and hold steady on them while being a little more flexible elsewhere. Be ready and prepared to compromise and your negotiations process will be friendlier and smoother.

The fewer contingencies you have, the closer you will be to getting the house you want. For instance, if you can afford a higher down payment and that’s what’s needed to get the house, then do it. Or, if the homeowner wants you to change the closing date in order to accommodate their schedule, then do it as long as it doesn’t affect your own schedule. The more flexible you are willing to be, the better your chances will be of holding the winning the bid.

In many cases, writing a personal letter to the seller and sending it in with your offer will help put a face and story to the process. So many home buying negotiations are sterile, with the two parties never even meeting each other. By adding a personal touch to the process, you’ll be connecting with the seller on a different, more personal level. And, when the seller feels as if they “know” the buyer, this can make all the difference in the home buying negotiations.

Homes.com is the place to dream and discover your ideal home! Are you starting to get the itch to look for your first or next home, but don’t know where to start? You’ve come to the right place! Browse our real estate and lifestyle blog for home buying tips, mortgage guides, DIY ideas, interior design, lifestyle topics, general home inspiration, or just some homes fun. We are sure you can scratch that itch and find all the information and tools you need to help in your home search. Want to start looking at available real estate right now? Head to our home page and check out homes for sale or rent listings all over the country. Happy house hunting!