When it comes to purchasing a home, there is a good deal of give and take whether or not you’re aware of it. For many homebuyers, a lot of the negotiation happens behind the scenes and, in one way or another, affects the end price you pay for your home. In order to get the best price on your home, you’ll need to know how to negotiate your new purchase.
Here are some of our favorite tried and true ways to negotiate your home purchase.
1. Choose Experienced Professionals
Whether you’re needing a Real Estate Agent, Loan Officer, or Real Estate Attorney make sure you’re choosing qualified, competent, and experienced professionals. Having people with experience working with real estate, sales, and contracts will be a boon when it comes to negotiating.
2. Get Your Finances in Order
Finances are the number one thing that holds up real estate transactions. Buyers who are underqualified, don’t have a mortgage plan, or simply don’t realize they can’t afford the home they want can derail a home purchase. Make sure you’ve gone through the pre-qualification process, have a line of credit, and know what you can afford before you offer.
3. Put Together a Strong Bid
Bidding on a home is becoming increasingly more common as housing inventories are strained. Make sure, before you bid, to do your research in order to make a competitive yet fair bid on the home you intend to purchase. If you’re buying an FSBO home, then consider being more personal with your offer and actually compose a written offer letter.
4. Hire a Home Inspector
If your bid is accepted by the seller, then it’s your right to have an independent home inspector take a look at the property. Typically, you have about 10 days to order an inspection and get the process started, so don’t waste any time. Many inspectors are weeks or months behind in busy real estate seasons, so act fast!
5. Put People First
It may seem like real estate is a cut-throat industry with agents jockeying for positions, looking to make commissions, and slash housing prices. The reality is that there are very much real people with real feelings and emotions in the background. Treat everyone with respect and be kind during your negotiations.
6. Trust Your Instincts
When it comes to making a big decision such as purchasing a home, it’s okay to trust your instincts. If something about the home’s condition doesn’t add up, the deal or price doesn’t seem right, or the characters involved make you feel uncomfortable, it’s perfectly okay to walk away.
7. Compare Title or Closing Companies
Many homebuyers feel that closing costs are simply out of their control, but the reality is that closing companies can vary drastically in what they charge for a closing. To save money, compare closing costs of comparable companies, and choose the one with the most experience, best testimonials, and most professional demeanor.
8. Limit Credit-Altering Activity
Once you start the process of getting a mortgage, stop any activity that would otherwise alter your credit. Don’t take on additional debts, loans, or open new credit accounts. Doing so could make your lender second-guess their confidence in you and possibly pull your line of credit or cancel your loan altogether.
9. Be Honest with Your Lender
Your lender should be your best ally during the negotiation process. Therefore, it’s a good idea to be 100% upfront with your lender about your financials, job status, and stability.
When you’re ready to get prequalified contact the loan experts at Tidewater Mortgage Services, Inc.