Tips For Negotiating During A Real Estate Purchase
If you are negotiating the sale of a home for the first time, you may think that you are unprepared because you have never done it before. Chances are that you have negotiated on the sale of a car before, which shares many similarities with negotiating for real estate. Here are a few things you can take away from car purchasing negotiation that also apply to real estate purchasing.
Know When You Should Walk Away
An amateur mistake is thinking that you found the home of your dreams and that you cannot walk away from the sale. Doing so gives the power to the seller, since they know they have you in the palm of their hands and can shape the deal to their own liking. Think back to when you were negotiating the sale of your car. Were there points in the negotiation that you were ready to potentially walk away from the sale if it didn't go in your favor? You need to think the same way about a home purchase.
If the seller won't be flexible when it comes to the price, or you find that negotiations have been going on for too long, walk away. You may find that the seller comes back with a more aggressive counter offer if they just lost the sale, which gives power back to you as the buyer.
Ask For Extras
There are many things that are up for negotiation when buying a home, just like with a car. A common negotiation tactic at the dealership is to throw in extra features for free to try and persuade you to make a purchase. You can do the exact same thing with a home purchase.
Extras in a home purchase are done in a couple of ways. You could ask the previous owner to make a repair that you need to do after you purchase the home, and that will force them to either do the repair themselves or have a professional do it for them. A seller can also give you a credit at closing that is equivalent of the repair costs, which simply lowers how much you owe in closing costs.
Don't be afraid to ask for things in negotiation if you feel it is needed. You do not need to buy a home in its current condition if you don't want to.
Always Continue Searching
You shouldn't stop searching for a car until those keys are in your hand, and the same applies to buying a house as well. Always assume that the deal can fall through, and keep your eye on the market during the entire closing process. Knowing there is a better home out there could give you the encouragement to walk away from a deal.
Keep these tips in mind when looking at homes to buy.