You’ve identified all your major needs and wants in a home, diligently searched within your budget, and found the right property for your lifestyle. However, the hurdle of negotiations still looms, so read on for our top seven strategies for how to ensure success.
1. Know the Market
If you do your research on home prices and market trends in the area then you’ll have a general idea of what the sales price “should” be. Consider a Comparative Market Analysis (CMA) which will take a variety of factors like the home’s square footage, build year, upgrades, etc., to compare it to similar homes in the area to determine an appropriate sales price.
2. Establish Limits
You should have a clear picture of your finances and what you can afford even before beginning your home search. Once you’ve entered negotiations, set a maximum and stick to it so you don’t get caught up in making an emotional decision that you can’t afford.
3. Build Rapport
Negotiations don’t have to be tense or combative. Enter knowing that each party is working towards the same goal: getting the home’s keys into the next homeowner’s hands! Forming a positive relationship with the other party will only encourage productive discussions.
4. Be Prepared to Walk Away
Don’t settle for a sales price that doesn’t fit your budget or a home that isn’t making you excited to start your next chapter. Knowing that there are other properties out there will help you keep a clear perspective.
5. Leverage Time
Depending on whether it’s a buyer’s or seller’s market, you can use time to your advantage. A seller might be anxious to sell their home quickly due to a variety of factors, so keep this in mind when making your offer if you have the upper hand in that sense.
6. Maintain Composure
Stay calm and confident even during high-pressure negotiations. Sometimes it may seem like the purchase just isn’t going to happen for you, but don’t count yourself out of the running until it's truly over.
7. Enlist Professional Assistance
At the end of the day, it’s always best to have an experienced broker on your side. We’ve guided our clients through countless negotiation scenarios in every type of market, so consider relying on our trusted advisement when you decide you’re ready to start your home search.