Negotiating the Best Purchase Price

If you desire to buy a home this year then you better be ready to Negotiate! Negotiating the best sale price will not be easy but with these insider tips from a Realtor you will be better equipped to negotiate.

Buying a home can be extremely stressful. It will consume your entire life during the process. There are so many steps to buying a home. I have written an article explaining every step of the home buying process, “Path to Homeownership”.

There are things you can do that will greatly help you when buying a home. The BEST thing you can do is enlist the help of a good local Realtor. Who better to help you then an expert right?

The best thing about my company Nova Star Real Estate is that we don’t charge our buyers anything for us to represent them. Other companies charge up to $500 for buyer representation, not us! You won’t pay me or Nova Star Real Estate anything to use us to buy a house.

This brings me to my first tip…

Use a Realtor

Negotiating the best sale price will be much easier if you use a Realtor. Using a Realtor will put years of expertise and knowledge in your corner.

Negotiating only starts with the price. Some people will feel somewhat comfortable negotiating the purchase price and some wont, but most people won’t know the best way to negotiate inspections, repairs and closing costs.

Having a Realtor handle the negotiating for you will also give you more leverage and power on your side.

Don’t Start Too LOW

I know everyone wants to get an amazing deal and brag about how low they paid for the house but “Low Ball” offers never work!

Maybe I shouldn’t say never but in the current market condition you will not get a good response or any response at all with a low-ball offer.

In a buyer’s market you may have some success with a low-ball offer but right now it is definitely a seller’s market.

You will have a much better shot at getting a lower purchase price if you forget about the low-ball offer and start a little closer to the list price. In my experience (on both sides of a low-ball offer) you will just make a seller mad and they will not be willing to negotiate with you. I have even seen sellers refuse to respond at all to a low ball offer.

Use Proof

When submitting a “low” offer and trying to get a great deal you will need proof to back your offer. This is where you can have your Realtor put “Comps” (comparable properties) with your offer.

If a seller is asking $10,000 above market value and you have “comps” to prove it, you will have a better time negotiating with the seller.

Having proof is also key when negotiating repairs. This is why you should always have a Home Inspection completed. Having a certified inspector give proof with picture of a repair that is needed will bring much more power then just a buyer saying something needs fixed.

Know Your Goal

If you are just trying to get a good deal you may end up disappointed, especially in this sellers market. You will need to know what your ultimate goal is. Usually your goal is to buy your dream home at a price that is reasonable to you.

Sometimes buyers will need help with closing costs. If this is the case then your goal isn’t to just get a home really cheap, your goal is to get the seller to pay some of your closing costs. This may mean that you will pay a little more then you would desire but you will be able to reach your goal of becoming a homeowner.

Be Tough

When negotiating you will need to be tough and at the same time you need to be reasonable. Every seller has a bottom line, it may be their break even point or it may be a little higher then break even.

Most sellers are reasonable and understand what market value is on their home. Yes, occasionally you will find a seller that is way over priced and wont budge but chances are you won’t be dealing with this kind of seller.

By standing your ground a little on the negotiations you may be able to get the seller to move a little lower on their price then they planned to. For this to be successful for you, you will need to make sure your offer is reasonable and close to fair market value.

Don’t Be Emotional

This may be very hard for some people. Purchasing a home can be a very emotional process. You are looking for a place for you and your family to live and grow together.

Try not to fall in love with a home before you write up your offer. If you get emotionally attached to a home you may end up writing a slightly higher purchase price and you will lose ground on the negotiations.

The best thing to do is to rely on your Realtor to help you come up with a good initial offer. You Realtor will not have any emotional attachment to the home and they will know what fair market value is on the home therefore they can help you come up with the best offer.

If you are working with a good Realtor then they should also be able to get information on if the seller has a mortgage on the property, how much they owe and what they bought it for. All of this information will help you to estimate the sellers bottom line.

Good Luck!

If you are house hunting, I hope that you will quickly find your dream home and when you do I hope that you are able to get it at a great price. Use my tips for negotiating and you will be better equipped to get a great deal!

If you have any questions about how to buy a home or the negotiating process please contact me! You can leave a comment bellow or send me an email.