In the real world, as well as in the real estate business, it pays to be a good negotiator. While many believe there has to be a winner and a loser, good negotiation skills can help to ensure that both sides walk away from the table happy.
Below are a few tips and suggestions that will be sure to keep attitudes positive and frustrations down:
Gather Information: If you are a buyer who’s found a home you think you might be interested in purchasing, ask your agent to perform a market analysis and research some comparable properties which have recently sold in the area. By performing thorough research, you can get a pretty good idea of the fair market value of the home you are considering. The more information you are able to obtain, the better off you will be. Make sure the real estate information you use is current and not taken from 2 years ago. Real Estate data up to 6-8 months back is acceptable. It’s also good to keep an overall perspective of the local real estate market and which way it’s trending. Being a buyers market and a sellers market could dictate your stagey.
Be Prepared: When entering into discussions regarding the price of a home, you’ll have more leverage if your finances are in order. Make sure you know what kind of information is contained in your credit report to avoid any nasty financial surprises. Then schedule a meeting with your lender and get pre-qualified for a mortgage.
Make a Fair Offer: Once you have gathered enough information to have a good idea of what the property is worth, have been pre-qualified for a mortgage, and are ready to submit an offer, make sure your offer is reasonable and fair. You don’t want to waste all the time and effort you’ve spent so far by submitting a low-ball offer that will only serve to insult the seller. By showing the seller a little respect with a realistic offer, you substantially increase your chances of acceptance and making your home buying dream a reality.