Purchasing a new home is a formidable undertaking. This is especially true for a first time buyer who must learn to negotiate the best possible deal. When someone lacks knowledge and expertise in this area, making what will probably be the biggest and most expensive purchase of their life can be a frightening experience. However, with the correct guidance, this needn’t be the case.
Here are a few tips for negotiating the price of your first home:
1. Be quick to respond to offers and counteroffers. Delays can be expensive. Be fast to ensure that the other party does not gain the upper hand. Any delay in responding may allow another buyer to enter into negotiations and push you out of the frame. A bidding war is the seller’s desire. Buyers must do their best to avoid them.
2. Be on your real estate agent’s good side. While the desire to save time and go directly to the seller can be tempting, real estate agents provide a valuable service. They are the best people to communicate interest and concerns. In any case, sensitive legal terminology and information can be exchanged. Only the agent has the knowledge to do intelligently communicate in those conversations.
3. Know how long the house has been on the market. Your agent should have this information. They will be able to use this to negotiate to your best possible advantage. The longer the property has been on the market, the more likely the seller is to sell it.
4. Consider the need for repair. Work needed on the house and any potential development should be addressed during negotiation. If a lot of work is needed, then it should be easy to argue that this be reduced from the listing price. The same is true for any issues that have been pointed out by an inspector during a home purchase investigation.