HomeBuyer University: Buying a Home, Just Got Easier
Course 1: The Home Buying Process
Step 1: Getting Pre-approved
Step 2: Hire A Real Estate Agent
Step 3: Search For a Home
Make An Offer
Now that you have found a property that you love, you should make an offer. You and your real estate agent will work together to make an offer that works for all parties. The home buying process is complex and can be stressful as each party wants the outcome to lean in their favor, or is a compromise.
Negotiating – What You Need To Know
Whether it’s a buyer’s or seller’s market can affect your power to negotiate. In a buyer’s market, potential home buyers have an advantage because of the volume of other properties available. Sellers should be more generous in attempt to secure an offer on their home. In a seller’s market, buyers should put their best foot forward in order to successfully compete for a desirable property.
A number of things can affect bargaining position. For instance, private matters such as divorce can expose the motivation and give the other person an advantage. It is critical to keep this information from the other party. The introduction of multiple offers can also affect who has leverage. Understand your power before determining a negotiation plan, since you may have no chance to change your position afterwards.
Look Beyond the Price
When buying or selling a home, price is only one aspect of successful negotiations. There are terms of an offer/contract to include: commitment and closing dates, inclusions/exclusions, special terms, deposits, requested repairs, and financing terms. These all play a role in a successful negotiation. Your real estate agent will advise you whether your terms are reasonable, or if may be off-putting to the other party. Digging in your heels on certain terms may hurt your ability to successfully compromise.
Your Agent’s Role in Negotiations
Your agent can ensure successful negotiations by leveraging their knowledge of the real estate market. The outcome of selling or buying a home directly correlates to the contract terms and the feelings of the buyers and sellers. Agents will act as the buffer among parties and maintain a civil negotiation process.
An Overview Of Negotiating Agreements For Homes
Successful negotiations rely on a realistic analysis of the real estate market, recognizing your bargaining position, considering contract terms, and employing help from an experienced real estate professional. It may be impossible to get everything you want, however, the objective is to arrive at a fair compromise.