Negotiating the price of a new home can be a stressful experience for buyers, particularly during a hot housing market. Fortunately, you do not have to go through this process alone. With the help of an experienced Realtor and a bit of preparation, you can have a successful negotiation when you put an offer on a home. Here are a few tips to help in the negotiation process.
Many homebuyers think they should wait until after they make an offer on a house to start the mortgage approval process. Seeking preapproval for the mortgage though can be a major advantage when it is time to make an offer, however. Buyers who are preapproved for a mortgage may have more leverage when it is time to negotiate, as the seller does not have to worry about the buyer’s ability to obtain financing. With preapproval, you can advance from offer to closing much more quickly and not leave open the chance that you can’t obtain the financing needed to purchase your home.
Buyers who are prepared to make a cash deposit with their offer may also have an advantage over buyers who are not able to make a deposit. Putting a deposit down with your offer signifies to the seller that you are indeed serious about purchasing the property. This can be an advantage when it is time to negotiate on price or other details. If you have the cash available and intend to use it as part of your down payment, this can be a great way to make your offer seem more serious to the seller.
Responding to seller counteroffers or other requests is important during negotiations. Buyers who take too long to respond may be perceived by the seller to not be serious. Taking a long time to respond also increases the chances that another buyer may make a better offer on the home. Be mindful of calls and emails throughout the negotiation process and be ready to respond to any questions or requests.
Since the homebuying process sometimes involves a long period of time and adjustments in properties that are being considered, it is a good idea to review the numbers before making an offer. Double-checking mortgage rates and estimated payments, property and other taxes, and insurance costs not only allows you to make an offer with confidence, but also helps you ensure that you know exactly how much to expect to pay for the home.
No matter how prepared you feel to negotiate the terms of a home purchase, having an experienced Realtor on your side is a great advantage. Phillips Real Estate has been serving buyers and sellers in Oklahoma for decades. This experience and local knowledge will benefit you as you prepare to purchase a new home. Contact us today at 405-368-9409 to learn how we can help you through the homebuying process.