Homebuying Basics – Negotiating The Best Price For Your Home

You submit an offer to buy a home only after you’ve done your research about your prospective home and if you’re already comfortable dealing with the seller. You still have to do some work after you’ve made your offer though. A seller can either accept or reject an offer. Be prepared to negotiate your way through in getting the price you want.

Studying the contract in detail and having a back-up plan are just two ways to prepare for the negotiation process. Barron’s ‘Consumer’s Guide to Home Buying’ explains that it is best to be prepared for price negotiations even before submitting an offer by creating a checklist of items to consider when negotiating. Here are some items you need to take into account when negotiating for the price of your new home:

1. Who are the key decision-makers involved in the transaction? ‘Knowing the players’ benefits the skilled negotiator because this allows you to understand who will really influence the buying and selling process. For example, is the seller working independently or are they working with agents, lawyers and other third parties to coordinate the transaction? Knowing who you will be negotiating with can help you identify the best approach for negotiations and give you a chance to gauge the trustworthiness of the selling party.

2. Do you have a contingency plan? If the seller refuses all of your offers, do you have other options? It can be frustrating to not be able to get what you want from the negotiation, but you also need to know when to back off and pursue another direction. Outline exactly how high you are willing to bid for the home and don’t go beyond your decision just to win.

3. Study all details of the contract. Make sure you understand everything that is written in the contract. Do not just assume the implications of certain terms in the contract if you’re not sure what they mean exactly. Don’t be afraid to meet and ask the seller to clarify vague provisions in the contract. You want to do this as early as possible to avoid any surprises at closing.

4. Are you comfortable with your realtor? Your realtor or buyer’s agent can provide guidance and professional advice about the home negotiation process, but you need to feel like you can trust them. Make sure you have spent enough time with them to develop a positive relationship and share your thoughts or reservations about the home well before the negotiating process gets started so you can make the most informed decision.

5. Be prepared to handle negotiation setbacks. Poor communication happens in any negotiation often and you have to learn how to deal with it. There are other things as well that make negotiating difficult. It is important to remain impervious to negotiation setbacks but you have to know when to stop negotiating when you think the transaction is not going anywhere.

Author and Realtor Alexandria P. Anderson helps clients to find and purchase Bloomington MN real estate as well as Bloomington condos and houses in the Twin Cities.