Did you know that when talking about a real estate negotiation stalemate, the best move is not be the first one to name the price? For a successful home buying, you need to get the upper hand and you can achieve that by knowing certain negotiation skills and strategies.
Here are 5 homebuyer negotiation strategies that are guaranteed to give you a better chance at winning negotiation stalements according to Trulia:
Go into stealth mode
Come to war all geared up.
"Not many people know that they can have their own independent appraisal of a home before going into contract," says Mario Mazzamuto, a San Francisco real estate appraiser.
By getting significant information regarding the property's worth and the neighborhood, you are able to face and give the seller an informed offer. Knowing the price of similar properties in the area will ensure that you get your money's worth.
Kick the tires
Know what you are buying and get the most out of your investment. Yes, we are talking about a home inspection.
"Having a professional home inspection can help identify costly defects in a home, which gives a buyer leverage in either negotiating for a lower price or getting the buyer to perform repairs," says Welmoed Sisson, a Maryland home inspector.
Get ready to rumble
Be a smart buyer and know your competition. According to Arvin Sahakian of BeSmartee, "Chances are very high that there are more than two other offers on the table for every single property that comes onto the market."
This means that you can't just go and make a lowball offer. So how do you do it?
"Offer the asking price, reduce contingencies, submit a solid mortgage preapproval, show a copy of the 3% earnest money deposit, and put down 20% or more as a down payment," and the house is yours, says Sahakian.
Count the days
When a house sits too long in the market, its appeal will begin to dwindle, and you can take advantage of this.
"After 30 days, the home has been market-tested," says David Feldberg, a California real estate broker. If a house is still available after the said period of time, the buyer then gets to have more leverage in the negotiation deal.
"For a seller, having strangers come through all the time stinks. Sellers are more likely to make concessions at this point," Feldberg adds.
Recognize desperation
Look out for telltale signs of a desperate seller who for some urgent reason needs to close the deal ASAP for some reason.
"You can usually determine how motivated they are based on their situation and why they are moving," says Nathan Pierce, an Arizona real estate broker. "Perhaps the property is distressed, or it's a family looking for a larger home."
