You’ve saved for your down payment, set a realistic budget and found a home worthy of an offer. Want to ensure you get the best price and terms possible? Here’s a rundown of some winning negotiation strategies:
1. Research the market.
Use public records to find helpful facts about the house itself: Has it been on the market before? For what price? Then widen the net by reviewing the MLS (multiple listing service) entries for comparable properties in the area and asking your real estate agent to run a comparative market analysis (CMA).
2. Learn about the seller.
Maybe the seller is hoping for a quick closing ahead of a cross-country move. Or buying a new house is contingent upon selling the current one. The more you can find out about the seller’s situation, the more ammunition you’ll have for negotiating.
3. Stay quiet on social media.
Excited to have found your “dream home”? Mum’s the word on Twitter or Facebook, or you’ll have lost any power to negotiate with a savvy seller’s agent.
4. Don’t debate every dime.
When it comes to the final offer price, remember that a few thousand dollars spread across your loan term (the length of your loan in years) might ultimately amount to less than what it costs to have dinner out once a month. Don’t lose your first-choice home over what winds up being a small amount in the long term.
5. Know a good deal when you see it.
Some eager sellers may initially price their properties to sell them quickly. If research suggests you’re getting a good deal, don’t try to get a better one on principle, as you could lose out.
Embracing the negotiation process can lead to a more rewarding purchase and significant savings on your first home.
This content is educational in nature and does not constitute legal, tax, accounting, financial or investment advice. You are encouraged to consult with competent legal, tax, accounting, financial or investment professionals based on your specific circumstances. We do not make any warranties as to accuracy or completeness of this information, do not endorse any third-party companies, products, or services described here, and take no liability for your use of this information.