A How-To Guide for Negotiating A Home Price
When it comes to home-buying, many first timers may find themselves too intimidated to attempt negotiating. Here's an insider tip: negotiating is much more common than realized, almost even expected of home buyers. Here are some tips to help you throughout the negotiation process.
First and foremost, it’s essential that you have your finances in order before you begin looking. Figure out home much you’re willing to spend and what mortgage you may be applying for, a process which your Premier Mortgage Group loan officer can help you through. Additionally, do the math on your mortgage before getting hung up on small price differences. For example: at an interest rate of 4.3 percent, the difference between $195,000 and $199,000 is $19 a month, a figure which is quite doable.
It is highly advised that each home buyer does adequate research on not only the property, but also the seller. Is the property in-line with listing/selling prices of similar properties? Get to know other homes in the neighborhood and even on that street, as knowing any prices discrepancies could save you money. Similarly, knowing the reason that the seller has decided to list can be very valuable. They may be needing to sell quickly, or on the contrary, they may not be in a rush at all which shows negotiation may be a little more difficult.
There are two pieces of advice that can help you once you’re looking to close on the property, the first being to ask for what you want. If there are repairs to be made, ask the seller to throw those in to make for an easier move-in. Personalizing your offer can also help the seller to be on your side. Writing a letter and maybe even including a family photo can work in your favor for a home that you’re competing for.
The most valuable tip we can offer is to work with a trusted real estate agent. When it comes down to it, they are the most impactful piece of this puzzle. If you’re unsure of who to go to, reach out to your loan officer as they will be able to suggest a great realtor who will be able to help negotiate and fulfill all of your requests. Apply online today and reach out to Premier Mortgage Group to see how we can help you achieve your dream home today!