Many first time home buyers may find themselves too intimidated to attempt negotiating a home price. Today we’re offering tips to help you buy your home at a price you like. Here are some suggestions to help you throughout the negotiation process.
First and foremost, be sure to have your finances in order before you begin looking. Knowing how much you’re willing to spend and what mortgage you may be applying for will allow you to either narrow or broaden your search. Similarly, do the math on your mortgage before getting hung up on price differences. For example: the difference between $195,000 and $199,000 at an interest rate of 4.3 percent is $19 a month, a figure which is quite doable.
Not only is it advised that each home buyer does adequate research on the property, but also the seller. Is the home in-line with listing/selling prices of similar properties? If not, you may be able to dwindle that price down. Other homes in the neighborhood and even on that street will be a great reference, and knowing any prices discrepancies will save you money. Additionally, knowing the reason that the seller has decided to list is incredibly valuable. They may be wanting to sell quickly, or on the contrary, they may not be in a rush at all which could possibly indicate that negotiation may be a little more difficult.
When looking to close on the property, we advise you to ask for what you want. Ask the seller to include repairs which may be necessary, making for an easier move-in. It may help to personalize your offer to the seller to help influence their decision in your favor. This could involve writing a letter or maybe even including a family photo to show them who will be enjoying their home.
Lastly, the most valuable tip we can offer is to work with a real estate agent whom you trust. They are the most impactful when it comes to the negotiation process. Reach out to your loan officer if you find yourself unsure of who to go to. They will be able to suggest a great realtor who can help negotiate and fulfill all of your requests. Apply online with us today and reach out to 8z Mortgage to see how we can help you achieve your dream home!