As a homebuyer, you naturally want to get the best deal possible. I’m no different… I’m all for getting a great deal when buying a house. There are, however, some tips and negotiation strategies that go into getting the deal done on a home.
If you’re looking for the right tools to get a good price, favorable seller concessions, repairs paid for, and a convenient closing, this post is for you. One of the most important skills you or your agent can possess to help you get that great deal on a home is the skill of negotiation. You should feel confident in your real estate agent’s ability to negotiate on your behalf.
Why? Negotiation skills are the #1 step in the whole process and will determine whether a good deal is made or not. So check out 4 of my top negotiation strategies for homebuyers in Roseburg.
1. Include Your Pre-Approval Letter
The first negotiation strategy all homebuyers in Roseburg need to do… and top of my list is to get pre-approved for a mortgage. A pre-approval will give you some negotiating leverage and make it much easier to get your offer accepted. Getting pre-approved goes one step beyond just a pre-qualification. Got questions about the difference, just ask.
Getting pre-approved for a mortgage is at the peak of my top negotiation strategies because it gives you the information you need to make an informed decision about your home purchase. You’ll know exactly what kind of offer you can make and it will show the seller that you are serious, you are willing, and most importantly… you are an able homebuyer.
During the pre-approval process, your lender will look over and analyze your specific financial situation. They will look at your ability to make monthly payments by taking a careful look at your income, assets, credit, and other financial factors.
Having done that, the lender will determine what kind of loan you qualify for and the amount you qualify for. This gives your real estate broker the parameters they need to help you find and negotiate the home sale.
When you find the house you want and it’s time to write the offer and enter into negotiations, knowing that you are pre-approved for the loan gives you and the seller the peace of mind of knowing that you can get the money. This allows us to work on your behalf and negotiate with confidence – which always puts you in a much stronger position.
As I mentioned, the important thing here is that sellers will view you as a serious buyer, which also gives you negotiating leverage. Sellers want to be assured that you do in fact have the funds or access to the funds needed to back up your offer.
If you have a pre-approval letter in hand, sellers will be more willing to negotiate because they will know that they are not wasting their time with you. And yes, a pre-approval letter will look better to the seller than a pre-qualification letter.
2. Understand The Local Market Conditions
Once you know how much you can actually qualify for and have your pre-approval letter, it’s time to move on to the next of our negotiation strategies… Make sure you understand the local market conditions.
What things should you know?
- Is it a buyer’s or a seller’s market?
- The average selling price of homes.
- Average time on the market.
- Amount of residential listing inventory.
- Market trends.
The type of market you are in will play a huge role in how much negotiating leeway you actually have. You are, of course, far more likely to have success with your negotiation strategies in a buyer’s market.
Knowing the market stats, prices, and trends, for example – will also enable you to be more realistic in your negotiations. A good place to begin is by looking at recent sales in the neighborhood you’re interested in.
To make your work easier, it would be good to consult an experienced local Roseburg agent. Just a side note – I put out weekly and monthly market updates to keep my audience up to speed with the conditions of the local real estate market. Or, if you prefer, you can always call me direct at 541-643-1131.
3. Find Out Why The Seller Needs To Sell
Another of the negotiation strategies I use that can really give you an edge involves finding out exactly why the seller needs or wants to sell and/or move. Once you get this information, you can turn it to your advantage by structuring your offer accordingly.
For example, if the seller needs to sell and relocate for a new job, needs to sell fast, but also needs 2 weeks after close of escrow to move, you will be able to write your offer in a way that would appeal to the seller’s specific needs… and I can tell you from experience that most agents don’t ask for this information.
If you want a strong negotiation strategy, use this one and you’ll be in the driver’s seat with information a competing buyer may not have. The seller is likely looking for a quick sale and will be willing to negotiate – and maybe even accept a lower offer to expedite the sale.
But if, on the other hand, the seller simply wants to upgrade and move into a bigger, better home, they may not be too motivated to negotiate much. In this scenario, you’ll have less negotiating room and will need to rely on your agent’s expertise.
4. Offer Something And Get Something In Return
One negotiation approach that most people overlook or don’t know about is the principle of reciprocity – that is, giving something to get something in return. Simply put, it works, which is why it made it on my list of top negotiation strategies for homebuyers.
Typically, during the process of negotiating both sides wind up compromising at least a little. So if you’re trying to get a good deal, like a lower price, you’ll need to consider what you can give to get the price you want.
For instance, if the seller needs a quick closing or maybe a flexible closing date, you could agree to those terms in your offer in exchange for the price you want. Or if the seller wants certain contingencies, you might agree to them so that you can get what you want.
In all honesty, there are some risks to be aware of here: you need to be careful not to give away too much, especially at first. The best course is to rely on your Roseburg agent to make sure you come out ahead in this kind of reciprocation negotiation.
Work with an Roseburg as One of Your Negotiation Strategies
As we’ve indicated throughout, one of the best negotiating strategies is as easy as working with an experienced Roseburg agent, especially if you’re a first time homebuyer or inexperienced at negotiating.
A top real estate agent in Roseburg can bring in-depth knowledge of the local market, experience, and expertise to ensure you get the best deal possible. If you’re a Roseburg homebuyer and want to use these best negotiating strategies to come out ahead, contact us today at 541-643-1131.