Are you about to buy a new home? Well, your home is certainly one of your biggest treasures and surely one of the biggest investments of your life. Many amateur homeowners are so emotionally carried away by the dream of having their own homes that they finally end up paying an unnecessary exorbitant rate. Make sure your emotions do not get to blindfold you when it comes to ensuring a smart negotiation on the final property deal. There are various strategies to mind while you are out on negotiation. Yes, you will have your broker with you to handle the negotiation affairs but it’s better that you too are ready with your homework.
1. Market study
Before you go out to argue on the selling price you must be careful about the present market scenario. The experts always advise to a thorough market research on similar type of properties so that you can have an average idea on their rates. If you can locate homes selling at significantly lower rates per sq.ft, then print out the information to utilize it during negotiation with the seller.
2. Don’t be too enthusiastic
This is one of the vital points to remember while you are negotiating for the final property deal. Even if you have got your dream home you should be reserved about your enthusiasm and keep it secret from the seller. If the seller somehow gets a clue about your enthusiasm then he can easily pose an exorbitant rate on the property, taking advantage of your emotions. So you should keep close guard on your motivation.
3. Understand seller’s motivation
You should try hard to understand the seller’s motivation. For example, if the seller is soon to move to a new place he will be in a hurry to sell off the property as early as possible. In that case he won’t waste much time on negotiation and might succumb to your offer as well. But then if the seller is not in a hurry to move out soon, you might have a hard time negotiating.
4. Estimate cost of repairs
This is another major tip to mind while you are looking for a smart negotiation on the property price. You would have to estimate cost of all necessary repair works on the property which you would need to meet after the acquisition. The aspiring buyer here can submit the estimate to the seller & request the sale to be contingent on completion of these repairs. In case, you want to get the improvement works done later, ask for a price deduction on the property. You must get a neutral thorough home inspection to find out all the needed improvement areas, including the hidden ones.
5. No insulting offer
Finally, it’s okay to bargain but never be too cheap with the offer. Many a times, over-smart amateur home buyers have lost out on some really potential homes given their negligence towards a really reasonable deal. The maxim here is to be reasonable with due respect to your budget.