How To Negotiate The Best Deal On A Home

When you have finally decided that it is time to move you may ask yourself, how do I get the best deal on a home? The short answer to that question is to keep focused on your plan and to avoid letting your emotions get the best of you. Here are a handful of steps to take so that you can achieve that goal.

Mortgage Prequalification

Getting prequalified for a mortgage is the only way for you to know what you can afford but it is also how you prove to a seller that you are financially capable of the purchase. Once your lender has informed you of how much you can afford they will provide you with a letter stating this. Submit this along with your offer to immediately prove your level of interest and ability to the seller.

Create an Offer Strategy

Before you even begin crafting your offer, decide how much you are willing to pay for the home and then backtrack to arrive at your initial offer. Figuring things out this way will help you facilitate a proper negotiation where you aren’t low balling sellers where it can be offensive or perceived as not being serious while it can also help you not spend more than you originally intended. 

Limit Contingencies

Simply put the less complicated the offer the more enticing it will be to the sellers. Retain some of the most important things like your standard financing or home inspection contingencies, but put a limit on anything else unless it is an absolute deal breaker for you. 

Ask Questions

Information can be very valuable so asking questions can arm you with some good ammunition. Ask questions such as why the sellers are moving, did they already buy a home, are there other offers or have there been? Knowing things like this can help you understand the seller’s position better where you can devise an offer that is most attractive to their needs.

Do Not Get Emotional

Buying a new home is most always a very exciting time so it is important to keep things in check. At the end of the day the home purchase is a business transaction so treating it that way will help you save money. Stay on track with your initial plan of how much you wanted to spend. If it comes to a point where the sellers won’t budge further on price, ask for things in return like covering a portion of the closing costs or perhaps a few things like outdoor furniture. 

Don’t Become Affected by Competition

It can be easy to get caught up in the competition game and want to win when there are multiple offers. However, take a deep breath and revisit your overall plan of how much you are comfortable paying for the home and what you are willing to forego. You won’t want to find yourself in a situation where you are unhappy in the end as you made too much of a sacrifice in any one direction.