After a long search, you finally settle for a great home. You are anxious to buy it, but the thought of negotiating gives you hives. If you have a sales agent, your work will be a lot easier because these professionals have the expertise and understand the terminologies that may sound like jargon to you. However it always helps to know some basic negotiation principles to make sure you're getting the best price.
Negotiating for your new home will depend on a lot of factors. You need to know the kind of market you are operating in. Your sales agent should advise you on what you need to do if you find yourself in a buyers’ market, a sellers’ market, or a balanced market.
In a buyers’ market
You have higher bargaining power here. There are several houses to purchase and sellers want to make a sale as quickly as possible. Be sure to have all the information you need to know about the house and assign a dollar value to the information at your disposal. Negotiate a lower price if you feel that the house you intend to buy will cost you more to improve or if you will still have to do repairs. The kind of neighborhood should also help you determine your price offer. Since you have an advantage, set a lower price depending on your concerns but don’t set a price that is too low. The seller is likely to consider your offer in this market and agree to your terms.
In a seller's market
In this market, the seller has the upper hand. You need the guidance of your sales agent. The seller is at liberty to set a higher price and will not bother negotiating if your offer is much lower than other buyers. Your sales agent should advise you on the best price as long as the home is not overpriced and this should be after the necessary inspections. As a buyer, you don’t have much leverage here, and you have to act fast. If an offer seems favorable, move quick and seal the deal before some else swoopes in and takes the house.
In a balanced market
Both the buyer and the seller have leverage in this market. There are enough of both. There are enough homes and enough buyers. When you find yourself in such a market, be patient. Go ahead and give a lower offer than the asking price. Quote issues that you believe need improvement. Walk away if you feel the seller is not willing to negotiate. This will show a level of confidence, and the seller might come back with a counter offer or even accept your offer.
The key to negotiating involves having the right information. Know what you has value to you. Sometimes, you could pay a higher price for things that are not valuable for you. For example, you can pay a premium to be on a golf course, but if you do not plan to play golf then the course has no value to you. Try to only pay for features that have value to you. Ensure that you have a sales agent who understands the sales jargon and the legal aspects of the process. Buying a home involves a huge capital outlay. Do it right the first time to avoid regretting first time home buyer common mistakes.