Whether buying or selling, the sale price of a property can change based on the market, among other factors. Negotiating is a big part of buying a home and a strategy that must be done carefully to produce a conclusion that will benefit both the buyer and seller.
Here are five tips for negotiating a home’s sale price:
Before You Start, Get Pre-Approved
Getting pre-approved on a home loan is the first step in being able to negotiate a home’s sale price. A pre-approval shows that you have been backed by a qualified lender and are eligible for a certain mortgage amount.
Remember To Always Get the Home Inspected
The results of a home inspection will go a long way in helping you negotiate the sale price of a home. If repairs are needed, you can negotiate with the seller to either have them pay for repairs or lower the home price if you will make repairs yourself.
Communicate Through Your Agent
Your agent is your most valuable resource. They know the housing market and comparable prices of properties in your selected area and help you understand when it is appropriate to negotiate. Your agent will also know how to negotiate in a way that will make the seller more receptive.
Review All Closing Costs
Before you settle, review all closing costs and see where negotiations can be made. This could be repair solutions or seller concessions. For example, if it is found that the home needs radon mitigation, the seller may agree to pay for the mitigation system. Or, in the case of fees, the seller may be willing to cover them by subtracting that cost from the home’s final sale price.
Know When To Walk Away
Remember that it is okay to walk away from a deal rather than purchase a home that’s not in your budget or one you feel pressured to buy. Before breaking a real estate contract, understand what that entails and if there are any contingency clauses. Adding a clause can help protect you from any liability if you choose to walk away.