Negotiation Techniques for Buying a Home Cambridge MA
Negotiation Techniques for Buying a Home
Strategizing to purchase a home is based on facts- the real estate market, the seller’s needs, and the property at hand- rather than your own personal style of negotiating.
The best thing that you can do to negotiate well is to find a good real estate agent. They will know the market and they already have a good method of negotiating. This means that will find more out about the seller than you likely would on your own. Also, if you are not comfortable with confronting a seller, the commission to the agent might be worth letting someone else handle that task.
If you want to negotiate without an agent, and many buyers do, it means:
The following will keep you calm with or without an agent:
Setting a Strategy
Market conditions are the most important factor in coming up with a negotiating strategy and these vary from place to place. So first find out if you are in a buyer’s, seller’s, balanced, or red-hot bidding market.
Negotiation for a Buyer’s Market
In a buyer’s market you have the most power because it means that there are less buyers than there are homes to be sold. This means that sellers are going to be nervous because if they need to move then they need to keep buyers which means that will need to adhere to your demands and almost always they will have to sell for less than the asking price.
Buyer’s Market Strategy: Ask for Everything Under the Sun
A buyer’s market is the best time for you to win concessions and extras.
Negotiating in a Seller’s Market
Buyers do not have much power in a seller’s market. If the seller has a good property and does not like your offer, the seller will not have time to negotiate with you. The best option in a seller’s market is to make a good offer and be direct about it.
Procrastination is not the way to go in a seller’s market. These homes will go fast and a good agent will know this. She makes her living on getting you to buy a house, but she is not trying to swindle you when she advises you to make an offer as soon as possible, perhaps even the first day you see the house, she merely knows that on a seller’s market, house go fast.
Seller’s Market Strategy: The Simpler the Better
Don’t try to wrangle, go for the house. You will feel lucky to get it.
Negotiating in a Balanced Market
This type of market will feel more stressful than it is. A balanced market has an equal amount of buyers to sellers. This means neither side will feel the pressure and this will force personal priorities to stand paramount. The negotiating process is likely to take longer than in a buyer’s or seller’s market.
Balanced Market Strategy: Split the Difference
Both buyers and sellers will feel good about compromising.
Keep in mind that buying and selling a home is not always about money. Make sure that you do your research to find homes you will enjoy.
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