The key to a successful home purchase is having a plan that guides decision-making and helps in problem areas. There are a series of important steps to ensure peae of mind and a competitive price in this high-pressure situation.
Preparation is part of planning, and a great start to facilitating negotiations is to go ahead and get pre-qualified for a mortgage. This shows the seller that you are prepared and serious. Also, this gives you a leg up on the buyers who aren’t pre-qualified.
Next, ask your Realtor® about the specific circumstances of the sale. Are the sellers relocating? How long has the home been on the market? What other offers have there been, and why didn’t they work out? All these questions can help gain insight on the seller’s situation and possibly get the best price, given the circumstances. Your Realtor® can help you interpret the various answers to these questions.
Finally, another important step is to decide the highest amount you’re willing to pay. Then, you and your Realtor® can work backward from that number to create a comfortable initial bid. This helps in saving money by not offering too much up-front and missing out on a better deal. These are some of the steps that are important in a good house buying negotiation. Watch out for a future posting that guides you through the process, once you found the right house, and learn more by clicking here.