Are you ready to make your dream home a reality? Negotiating your home purchase is a strategic skill; knowing the right moves can lead to a profitable sale. As Mark Bastorous quotes, “Price is what you pay. Value is what you get.” According to recent data, negotiation can save homebuyers thousands of dollars on their purchase. In this guide, we’ll break down the dos and don’ts of negotiating your home purchase, empowering you to secure your ideal home without breaking the bank.
When You Should Negotiate
To get the best deal possible when purchasing a home, negotiating is necessary. Here are some things you should negotiate:
1. Do Negotiate Closing Costs
When you’re buying a home, there are many costs involved, and closing costs can add up to a significant amount. These costs typically range from 2% to 5% of the sale price of the home. If you’re short on cash, negotiating with the seller to cover some of the closing costs can be a smart move. This can increase your purchasing power and make the transaction more manageable for you.
However, it’s essential to be aware of the situation. If there are multiple offers on the table or if you’re purchasing a luxury home, asking for seller credit might not be the best decision. In such cases, the seller and their agent might question your ability to afford the home.
2. Do negotiate Keeping the Furniture
When you’re touring a home, you might fall in love not only with the property itself but also with the furniture and decor. If the home isn’t staged with rented furniture, you can negotiate with the seller to include some of the furnishings in the deal. This can be particularly advantageous if the seller is downsizing or moving far away and doesn’t need all their furniture.
By including furniture in the deal, you can save money on buying new items for your new home. Moreover, it’s essential to communicate clearly with the seller about which pieces of furniture you’re interested in and make sure that they’re included in the purchase agreement.
3. Do Negotiate the Inspection and Closing Timeline
According to Mark Bastorous, once you’ve found the perfect home and have your financing in place, negotiating the inspection and closing timeline can make the process smoother and more appealing to the seller. If you’re ready to move quickly, you can offer a shorter closing timeline, which can be attractive to sellers who want to sell their home quickly. Additionally, if you’ve already lined up a home inspector, you can negotiate to have the inspection done promptly to expedite the process.
Another option is to consider a pre-inspection before making an offer. This allows you to waive the home inspection contingency, showing the seller that you’re serious about buying the home. However, it’s crucial to discuss the timeline with your lender to ensure that everything stays on track.
When to Pause Your Haggling
Sometimes, being too aggressive during negotiations can backfire. Here’s when you should ease off:
1. Don’t Negotiate in Bad Faith
Negotiating in bad faith can have far-reaching consequences beyond the immediate transaction. It can tarnish your reputation within the real estate community, making future negotiations more challenging. Moreover, it could lead sellers to question your sincerity and commitment to the process, ultimately jeopardizing your chances of securing the home you desire. Making an excessively low offer not only risks insulting the seller but also undermines the trust essential for effective negotiation. It’s crucial to strike a balance between securing a favorable deal and demonstrating respect for the seller’s position. This approach fosters a constructive dialogue and increases the likelihood of a successful outcome.
2. Don’t Negotiate Incrementally
Raising your offer by small increments can be seen as insincere and annoying to the seller. Instead of nickel-and-diming the seller, it’s better to decide on your maximum offer upfront and negotiate in no more than two additional steps. This approach demonstrates to the seller that you respect their time and are genuinely committed to reaching a fair agreement. By avoiding prolonged haggling, you convey a sense of transparency and sincerity, which can foster a more positive negotiation atmosphere.
Furthermore, being empathetic towards the seller’s perspective and acknowledging their feelings can help build rapport and facilitate smoother negotiations. It’s crucial to maintain a balance between advocating for your interests and recognizing the seller’s position to achieve a mutually satisfactory outcome. Remember, negotiations are not just about the final price; they’re also about preserving relationships and ensuring both parties feel satisfied with the transaction. Therefore, showing empathy and understanding can go a long way in securing a successful deal while fostering goodwill between you and the seller.
3. Don’t Issue Ultimatums
Taking an aggressive “take it or leave it” stance can alienate the seller and lead them to walk away from the deal entirely. Even if the seller is willing to compromise on the price, issuing ultimatums can create tension and make it difficult to reach a mutually beneficial agreement. Mark Bastorous says that instead of making demands, it’s better to approach negotiations with a spirit of collaboration and openness.
This can help build trust between you and the seller and increase the likelihood of reaching a successful outcome. Overall, negotiating with honesty and respect can lead to a successful outcome, while being too aggressive can sabotage your chances of getting your dream home.
Last Words of Advice
In summary, negotiating your home purchase requires strategy and patience, as it’s a complex process that involves various factors. Remember to negotiate not only the purchase price but also closing costs, keeping furniture, and managing timelines wisely. Avoid engaging in negotiations in bad faith, which can sour relations and disrupt the deal. Instead, approach negotiations incrementally, focusing on win-win solutions rather than ultimatums. Strategic negotiation can significantly save you money and help secure your dream home. Stay diligent and patient throughout the process, understanding that good negotiations take time and effort. By following these tips and staying adaptable, you’ll navigate the home-buying process successfully, ultimately securing the best possible deal and ensuring your satisfaction with your new home.
