How To Negotiate The Best Price For Your First Home
After you've spent enough time doing all of the research about your prospective home and are comfortable with working with the seller, it's time to make the offer. However, the home buying offer isn't the end of the sales process; you may be involved with negotiating a price after making the offer if the seller refuses to accept it, so you'll need a plan to get the price you want - or close to it - well before you extend your initial offer.
Understanding all of the terms of the contract and working on a contingency plan are just a few ways to make sure you really do get the best price for your dream home. Barron's 'Consumer's Guide to Home Buying' encourages all prospective homeowners to create a checklist of items they can practice well before the negotiation process takes place. Here are a few items to consider as you begin negotiating the price of your new home:
1. Who are the key decision-makers involved in the transaction? 'Knowing the players' benefits the skilled negotiator because this allows you to understand who will really influence the buying and selling process. For example, is the seller working independently or are they working with agents, lawyers and other third parties to coordinate the transaction? Knowing who you will be negotiating with can help you identify the best approach for negotiations and give you a chance to gauge the trustworthiness of the selling party.
2. Do you have a contingency plan? If the seller refuses all of your offers, do you have other options? It can be frustrating to not be able to get what you want from the negotiation, but you also need to know when to back off and pursue another direction. Outline exactly how high you are willing to bid for the home and don't go beyond your decision just to win.
3. Have you looked over all of the details of the contract? It's important to fully understand all of the terms of the contract so you're not left with any surprises at closing. Take the time to review the contract in as much detail as possible and note down any questions you have. Set up a meeting with the seller to go over anything that doesn't seem clear to you so you don't have any reservations about signing if you do get an accepted offer.
4. Develop a relationship with your realtor. Realtors have the experience to give you professional advice about your prospective home. Spend the time to develop a positive working relationship with them. Voice out your concerns to your realtor well ahead of the negotiation process to give your realtor time to help you in making an informed decision.
5.Are you ready to handle setbacks? Poor communication skills from the seller's agent, hostility from the seller and other negative communications that occur during the buying and selling process can make it difficult to negotiate fairly. You need to keep your cool and make sure that you are ready to stop the deal if you don't feel like it's going down the right path. - 23199
Understanding all of the terms of the contract and working on a contingency plan are just a few ways to make sure you really do get the best price for your dream home. Barron's 'Consumer's Guide to Home Buying' encourages all prospective homeowners to create a checklist of items they can practice well before the negotiation process takes place. Here are a few items to consider as you begin negotiating the price of your new home:
1. Who are the key decision-makers involved in the transaction? 'Knowing the players' benefits the skilled negotiator because this allows you to understand who will really influence the buying and selling process. For example, is the seller working independently or are they working with agents, lawyers and other third parties to coordinate the transaction? Knowing who you will be negotiating with can help you identify the best approach for negotiations and give you a chance to gauge the trustworthiness of the selling party.
2. Do you have a contingency plan? If the seller refuses all of your offers, do you have other options? It can be frustrating to not be able to get what you want from the negotiation, but you also need to know when to back off and pursue another direction. Outline exactly how high you are willing to bid for the home and don't go beyond your decision just to win.
3. Have you looked over all of the details of the contract? It's important to fully understand all of the terms of the contract so you're not left with any surprises at closing. Take the time to review the contract in as much detail as possible and note down any questions you have. Set up a meeting with the seller to go over anything that doesn't seem clear to you so you don't have any reservations about signing if you do get an accepted offer.
4. Develop a relationship with your realtor. Realtors have the experience to give you professional advice about your prospective home. Spend the time to develop a positive working relationship with them. Voice out your concerns to your realtor well ahead of the negotiation process to give your realtor time to help you in making an informed decision.
5.Are you ready to handle setbacks? Poor communication skills from the seller's agent, hostility from the seller and other negative communications that occur during the buying and selling process can make it difficult to negotiate fairly. You need to keep your cool and make sure that you are ready to stop the deal if you don't feel like it's going down the right path. - 23199
About the Author:
Alexandria P. Anderson is a Minnesota Investment Property specialist who helps First Time Home Buyers In Minnesota to find and purchase properties in MN. Get a free copy of "The Investors' Rental Guide" at GreatInvestmentProperty dot com.
posted by X - Men @ 2:31 AM
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