How To Negotiate House Prices Successfully
Learning how to negotiate home prices can seem impossible to outline because each sale is different, but here are a few commonalities, tips and tricks to keep in mind.
Start With A Home Inspection
Home inspections help buyers understand what’s in good condition with the property and what needs updating or repair as soon as possible. Home inspections aren’t required but are highly recommended, particularly when you want to use an inspection as leverage for negotiations. You can use the inspection report to ask the seller to cover the cost of repairs or to take money off the asking price so you can pay for repairs, which puts less strain on your budget.
For example, if the home inspection reveals that the home needs a new roof, you can ask the seller to reduce the cost of the home to be in line with the cost of a new roof.
Work With A Real Estate Agent
It might be difficult to go through the home buying process without a real estate agent, and if you’re seriously considering not working with a real estate agent, you might want to rethink your plan. Not working with a real estate agent can put you at a higher risk of paying more for a property than you should.
Real estate agents can help you determine an appropriate initial offer, and they’ll have a lot of inside knowledge based on where you live and the condition of the property. Real estate agents can also represent you when speaking with the seller or the seller’s agent. Look for the following when you choose the right real estate agent for you:
- Experience working with similar buyers
- Knowledge of the area and specific neighborhoods
- Friendly and outgoing personality
- Available to take the buyers on as clients
- Known ability to negotiate effectively with sellers
Get Sellers To Cover The Closing Costs
As a buyer, you shouldn’t just focus on finding ways to get sellers to commit to lowering their asking prices. You can also encourage sellers to cover at least part of your closing costs if you decide to purchase their home.
The average price of closing costs typically range from 3 – 6% of the purchase price. There’s an origination fee, which is the cost of setting up the loan. You also have the cost of getting title insurance on the deed. You can ask the seller to pay for some or all of these costs when <…….