Buying a home is one of the most important financial decisions you’ll make, so it’s important to know exactly how to negotiate the best price possible.
Here are some key tips to help you navigate the negotiation process with confidence, and put in a strong offer for the home of your dreams:
Get Pre-Approved First
Before negotiating, get a pre-approval letter for your mortgage. This shows sellers you’re serious and able to put in a competitive offer. It also sets expectations for what you can realistically afford. Call your Home Loan Expert at 877.785.5422 to get your pre-approval.
Identify The Kind Of Market You’re In
Determine whether you’re living in a buyer’s or seller’s market. In a buyer’s market, you may have more room to negotiate and come in under asking price. In a seller’s market, bidding wars are common, homes sell quickly and you’ll likely have to come in at or above asking price.
Ask For Seller Concessions
If the seller won’t negotiate price, you could ask for other perks such as: Assistance with closing costs and inspections, repairs, a home warranty and more. These concessions can save you money without affecting the sale price.
Use Inspection Results As Leverage
You may uncover red flags after a home inspection that were not obvious when touring the property. Problems with electrical wiring, roofing or plumbing may be very expensive to fix, and could impact whether or not you continue pursuing a home. Use any negative findings to renegotiate the price or request repairs before closing.
Pay Attention To The Details
Pay attention to important details about the listing. Watch out for how long the property has been on the market, recent price reductions, listing changes and comparable sales. For example, homes that have gone under contract multiple times without closing may have hidden issues that you should consider. Additionally, if the home has been on the market for a long time, you may have more leverage and can secure a lower price than usual. Attending an open house can also help you gauge how much competition you’ll have to contend with.
Avoid Lowballing
If your offer is too low, sellers may choose to end negotiations outright. Ask your real estate agent about comps in the area, and take sound advice, to make sure you don’t undermine your credibility. A lowball could cause you to miss out on a home that would’ve otherwise been within reach.
Write A Letter To The Seller
Sometimes, a thoughtful letter can tip the scales in your favor in a competitive environment. Some sellers may consider it a plus if potential buyers cherish the home as much as they have.
Be Willing To Walk Away
Sometimes, the best negotiation tactic is being willing to walk away. If the seller isn’t meeting your needs or the price doesn’t align with the home’s value, you can always find something that is a better fit for you. Remember: If it no longer makes financial sense, move forward and onward.
Negotiating a home price may be intimidating at first, but getting informed about the process will help you approach each step with clarity and confidence. With that foundation, you can land the right home for the right price and feel assured that you’re making a smart investment.
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*As a member of the AmeriHome family, borrowers are part of the AmeriPurchase+ program and qualify for a $750 lender credit for all of your home purchases done with AmeriHome, for any property you own. Credits will be applied only if your loan closes with AmeriHome. This offer can not be combined with any other offers and is not applicable for FHA Streamline, or VA IRRRL Refinance transactions. Other restrictions may apply. Terms and conditions are subject to change. The AmeriPurchase+ program is subject to termination without notice.
