Negotiating Tips for Home Buyers
A home is one of the largest and most emotional purchases most of us make in our lives. Here are a few key points to keep in mind as you negotiate for your Dream Home.
Negotiating Secret #1: Negotiation Begins Long Before the Offer is Written
Every interaction between buyers, sellers and their agents has a bearing on the outcome of an attempted home purchase. Every question the listing agent or the seller answers can give you a clue as to their motivation. (It’s good to remember this whether you are asking or answering the questions.)
Negotiating Secret #2: Let the Seller See that you Love Their Home
Playing hard-to-get is a good strategy when buying a car or furniture, but not when buying someones home. Often, one of a home seller’s secret goals is for the new buyer to love their home as much as they do.
The seller and the listing agent are evaluating the likelihood that the buyer will remain committed all the way to a successful closing. Go ahead and let some passion show!
Negotiating Secret #3: Be Creative
I recently sold a home which received 8 offers. The first buyer to see the home was the first to write an offer–on the first day the home was on the market. The following day they had flowers delivered to the seller. The seller selected them over the other buyers who wrote offers, two of which actually offered a higher sale price.
It wasn’t just the flowers, of course, but the level of their excitement and commitment which convinced the seller that these people would still be there at the closing. (The flowers didn’t hurt.) At the same time, one of the agents who wrote an offer came across as arrogant to the seller. Choose your agent wisely.
Negotiating Secret #4: There is a Time to Stop Negotiating
The final secret is one that the expert negotiator will have a difficult time with. Whether this home purchase is for your personal residence or an investment, if it is the ideal property to buy, remember that saving $10,000 on a home you don’t get doesn’t really save you anything.
Ask yourself whether this home will be remembered as the one that got away, and understand that $5,000 or $10,000 measured against the personal enjoyment of your family may not truly matter. Sometimes you “win” by getting the house.
These four negotiating secrets will give you a nice advantage in your next home purchase. If you liked this, check out “Secrets of Negotiating for Home Sellers.” See what the other side’s secrets are!