Thanks to Trulia.com for
the following advice…
When it comes to buying a home, your negotiation smarts
can go a long way toward protecting your best interests and your cash. Here are 9 critical negotiation tips to help
ensure you’re getting the best deal:
1.. Set your
priorities early
Knowing what’s really important early on is critical to
getting a great deal. Ultimately, the
bar for whether your negotiation is successful is determined by what the home
and contract terms are worth to you.
2.. Know your
local environment
The best negotiators are the most informed. To get the best deal when buying, ask your
agent to provide data on these critical local factors:
-
Recent sold prices for similar homes
-
Average difference between asking and sold price
-
Average days on market for similar properties
3.. Get the
inside scoop
Don’t make a blind offer.
Make sure you ask your agent to explain market data and how the numbers
relate to your transaction. In addition,
he or she may know valuable transaction specifics that can strengthen your
position, like whether or not the sellers need to move quickly.
4.. Problem
solve for all parties
Traditionally, negotiations were a two-way power struggle
between buyer and seller. Now, buyers
have to consider banks, appraisers, and sometimes even property associations
that all have their own guidelines and needs that impact the term of the deal.
It’s more important than ever to approach your negotiation
as an exercise in problem solving with the aim of meeting the needs of as many
parties as possible.
5.. Bond with
your bank
Too often transactions fall through at financing. Work in advance to make sure your deal
doesn’t die at closing. For buyers this
means working with your agent and mortgage broker to secure back-up financing
in case things go awry with your first loan.
Tip: Decide on your bottom- and top-line prices
and what your biggest priorities are before the negotiation begins.
6.. Manage
your own mindset
Remember, when negotiating, the least emotional parties
usually have the most power. The more
attached you are to a particular home, price point, or set of terms, the more
likely you are to panic or cave in on important points, like price,
unnecessarily.
Lean on (and listen to) your agent for objective support
throughout the transaction. It’s their
job to help ensure you’re making the best business and life decision.
7.. Learn (and
accept) the “negotiable”
To manage stamina during the negotiation, find out early
what is and isn’t within each party’s control.
Your agent can help you stay clear on this and avoid the
emotional exhaustion that results from trying to haggle in areas that aren’t
really negotiable (e.g., the bank’s bottom line, cosmetic repairs on most
foreclosures, etc.).
8.. Minimize
time pressures
When buying or selling a home, moving deadlines can cost
you thousands of dollars and cause you make needless compromises because you’re
in a rush.
When buying or selling, here are a few ways to buy
yourself time:
-
Plan and search early when possible,
-
Locate temporary rentals, and
-
Develop a plan-B for closing day in case you
encounter last-minute hurdles.
9.. Act quickly
– not impulsively
When you find ‘your’ place, make an offer. When you get a counteroffer or response,
respond to it. In real estate, time is
always of the essence, and prolonged hesitation often results in lost opportunities.
There’s nothing wrong with sleeping on a decision
overnight, if the ‘right’ move is unclear.
But keep in mind, there are competing buyers and changing interest rates
lurking, which can change the whole bargaining dynamic at any minute.
Cynthia Schmier, Broker/Owner
CRS, CDPE, CNE, CIAS, MDI,
5-STAR
RE/MAX Country
Cynthia@Cynthia-Online.com
(360) 400-3475
