Introduction
With the retail price of homes in a deep slump throughout many parts of the world and homes remaining in the market for longer times, buying a new home now may make very good financial sense for you. Yes, despite the buyer’s advantage, home price negotiations can still be tricky for a buyer due to the inherent legal complexities and high costs. With a more complete understating of the field of real estate negotiations, you can lower the price of your new home to a large degree. This article will provide you some tips on how to accomplish this. Let’s begin!
Step 1
To successfully negotiate the price of a new home, as the buyer, you must understand the local real estate environment. For instance, find out if the housing market in your area is even weaker than the national one. Perhaps the seller is on the verge of facing bankruptcy and is desperate to sell his properties. Perhaps the realtor is moving away to a better housing market soon, and wants to sell the house as quickly as possible. Knowing the answer to any of these and other possibilities facing the realtor agent could give you a serious negotiating boost in lowering the price!
Step 2
For instance, find out if the housing market in your area is even weaker than the national one. Perhaps the seller is on the verge of facing bankruptcy and is desperate to sell his properties. Perhaps the realtor is moving away to a better housing market soon, and wants to sell the house as quickly as possible. Knowing the answer to any of these and other possibilities facing the realtor agent could give you a serious negotiating boost in lowering the price!
Step 3
Similarly, the seller too is looking for leverage during negotiations with you on the price. Therefore, it is important that you do not reveal details about yourself that could help the sellers. For instance, do not appear overly eager to purchase the home you like. Any desperation will allow the seller to be more firm on the asking price knowing that you are willing to pay extra for it.
Step 4
Another detail you should not reveal – if it applies to you – is the fact that you are planning to pay the price using cash. This will let the seller know that you have enough money, and the option of taking additional bank loans, and they could therefore hold firm on the asking price.
Step 5
Tips
One of the most effective methods of negotiating the price of a new home is with face to face contact with the seller. Although more modern options, such as faxing or email, may seem more convenient, it is more important to communicate clearly with the seller. With a personal meeting, you can expresses yourself more freely, not just verbally through words, but also nonverbally.
Sources and Citations
A seller may even reveal a compromising detail about the house or the real estate market in person that he would not do in an email or a fax because such conveniences offer the luxury of a pre-planned response.
With your new found knowledge in home price negotiations, you can land the house of your dreams and within budget. Good luck!
