If you’re in the market for a new home, chances are you’ll have to go through the negotiation process. While some people may view negotiating as an uncomfortable situation, it doesn’t have to be! With a little preparation and knowledge of the process, you can turn negotiations into a positive experience. Here’s what you need to know about negotiating as a buyer.
What Can You Negotiate in the Contract?
When it comes to finalizing a contract, almost everything can be negotiated! Before making an offer, you should anticipate that you may need to negotiate various points of your contract, such as the sales price. It’s important to remember why you want this property and what it’s worth to you from both a financial and emotional standpoint—this will help guide you through negotiation. With so much on the table, having experts there to provide insight into all possible outcomes and options allows buyers to make informed decisions as they reach their final agreement, but this is something you can do on your own if you like.
Negotiating on Your Own Vs. Hiring a Professional
When it comes to negotiating, is a professional worth the cost? That is a tricky question. On one hand, professionals have experience with these types of situations and can provide valuable advice that could lead to an outcome in your favor. However, is their knowledge really worth the money you would pay for their services? You need to ask yourself how much money is at stake and how comfortable you are negotiating on your own and whether or not a professional is worth it is up to you.
But make sure to consider the gains you could make by finding an expert negotiator that could ultimately earn more than they cost. Check out our partner brokerage for affordable and professional real estate services.
Thoroughly Look Over the Seller’s Preferred Changes
When it comes to negotiations with sellers, one of the most important steps is looking over the seller’s preferred changes. Knowing exactly what they are proposing helps you know whether you accept or continue negotiating. It’s critical to know what the seller is changing in their counter offer and double check if each item is within expectations and desired outcomes. The seller may have agreed to your purchase price, but did they change the settlement date, or did they remove a contingency you’d rather keep in? Taking your time to look through every detail helps make sure that both parties are on the same page and that nothing slips by unnoticed. This will help ensure a smooth transition moving forward, so be thorough!
How Many Times Can You Negotiate?
Well, the answer depends on a few factors, such as what terms you are negotiating back and forth on and how eager you are to purchase the house. If it is necessary to stick below a certain budget, or if you are more concerned about inspections, it might make sense to keep pushing for better terms on one specific part of the contract. On the other hand, if you’ve turned off the seller and they are no longer interested in your offer, was it really worth it? Ultimately, when it comes to when (or when not) to stop negotiating when submitting an offer, your best bet is to use common sense! If the counter offer already seems reasonable enough and all attempts at further negotiation seem fruitless, perhaps this is the time when it’s best just accept what’s been offered.
Decide What is Most Important to You in the Contract
When it comes to negotiating a contract with a seller, making sure that you are covering all your bases is vital. Consider – are you most concerned on price? Do you need to have inspections? Is the seller contributing any funds? Maybe you need to sell your own home before settling on this one? Understanding what’s most important to you can be the difference between an okay deal and an excellent one. Ultimately, when deciding what is most important to you in a contract negotiation, look beyond just short-term costs to ensure that all of your needs are covered. You want to know these points before putting in any offer to best be prepared for the seller’s response. It can cause unnecessary delay if you spend time after receiving a counter offer deciding what matters most to you.
You Respond to the Seller’s Initial Negotiation
When the seller submits their counter offer, the negotiations heat up and the buyer needs to be ready to bring their A-game. Buyers should come to the negotiations prepared for the long haul, with research completed and the willingness to compromise if needed. An understanding of the seller’s goals and motivations can be very useful in these situations – use that knowledge to your advantage. Most importantly, stay cool; a little bit of wit goes a long way in keeping the atmosphere light and productive. Then work together to close the deal on terms both sides can agree upon!
Buyer Negotiations: Closing Thoughts
Now that you understand what can be negotiated in a real estate contract, as well as some of the strategies for effective negotiation, it’s time to put your new skills to work. If you’re working with a professional negotiator, they will likely handle many of these steps on your behalf. However, it’s still important that you understand the process and what’s happening behind the scenes. The next time you’re negotiating a contract, remember these key points and you’ll be sure to come out ahead.