If you have found the house of your dreams, but find that it’s a little out of your price range, all hope is not lost! There could be a way for you to score this house with the right negotiating techniques. You’ll need some help from your Realtor but with a few smart tactics, you might just wind up with the house that you want with a price tag you can afford. Here’s how to find the property you really want at the right price.
Do your research
Before making an offer, do a little background research on the home, the seller and the neighborhood. Try to find out why the seller is moving. Are they getting divorced? Are they moving for work? How long has the house been for sale? Also take a look at the neighborhood and try to find out what the neighbors are like. Are they friendly? Is it a safe place for your kids to live and play? What are some the of the prices of recently sold homes in the area? It’s important to know the comps when trying to figure out if the listing price is right or if it’s too high.
You’ll have to compromise somewhere
Recognize that when you are looking for a house, unless you have a massive budget, you will probably have to compromise somewhere. You might find a great house that’s the right size but in the wrong location or a house that’s too small and at a price point you can’t afford. When selecting a home, look for something that fits your biggest needs and you could add other things to it later on.
Don’t get hung up on the little things
After learning to compromise with the things you don’t love about the house, don’t get caught up in small amounts. Arguing about bring the price of the home down a few thousand dollars might not be the best usage of your time. Several thousand dollars will only affect your monthly payment amount by about $20. Don’t let that cost you getting into a home that you love.
Move fast when you find the one
When you find the house that is everything you’re looking for and more, don’t wait. In this market, you’ll want to put in an offer right away. Delaying your offer could mean someone else puts an offer in first or you could find yourself in a bidding war. You could even write a letter to the seller about your situation and why you love the house so much. It might sway their opinion to be more inclined to sell the house to you.
Give an offer based on home value, not price
Talk with your Realtor about reasonable offer prices and find out the overall value of the home. Then base your offer on the overall value of the property, not the list price. The price could be listed too high, especially if the owner has decided to sell it on their own, but with some research, you can find a reasonable and realistic price to offer.
Get it appraised and inspected
After putting in an offer on the home, you will want to get it appraised. An appraisal will check to make sure the property value matches what you’re paying. If it comes back too low, the lender might back out. If it comes back higher, then you’ve got yourself a great deal. You’ll also want to have an inspection done to make sure there are no problems with the property before going to closing. It’s not a required step, but it is something that will give you peace of mind.
Ask for what you want
Finally, when you go to closing, be sure to tell the seller exactly what you want in your terms. You never know if the seller will credit you some closing costs or credit repair costs for items in the home. All you have to do is ask! If the answer is no, it’s OK because at least you tried! You will also have the help and experience of a Realtor to guide you through the negotiation process. Make sure to tell you Realtor exactly what you want and look over all contracts and legal documents carefully before signing.
Way to go– you just bought a house! And if you used our techniques for getting it at the price you want, you probably scored a major deal. We’re so happy for you! If you need help finding or selling a house in Maryland, The Bob Lucido Team is your best source for real estate help. We’re the #1 Keller Williams Team in the WORLD for a reason. We get things done right! Give us a call today!