Negotiate Your Best House Buy

Keep your emotions in check  and your eyes on the goal, and you’ll pay less when purchasing a home.
   
 When negotiating a house  sale, for every concession you make, ask for something in return. Image:  Westend61/Getty Images
 
  Buying a home can be  emotional, but negotiating the price shouldn’t be. The key to saving money when  purchasing a home is sticking to a plan during the turbulence of high-stakes  negotiations. A real estate agent who represents you can guide you and offer  you advice, but you are the one who must make the final decision during each  round of offers and counter offers.
  Here are six tips for  negotiating the best price on a home.
 
  1. Get prequalified for a mortgage
  Getting prequalified for  a mortgage proves to sellers that you’re serious about buying and capable of  affording their home. That will push you to the head of the pack when sellers  choose among offers; they’ll go with buyers who are a sure financial bet, not  those whose financing could flop.
 
  2. Ask questions
  Ask your agent for  information to help you understand the sellers’ financial position and  motivation. Are they facing foreclosure or a short sale? Have they already  purchased a home or relocated, which may make them eager to accept a lower  price to avoid paying two mortgages? Has the home been on the market for a long  time, or was it just listed? Have there been other offers? If so, why did they  fall through? The more signs that sellers are eager to sell, the lower your  offer can reasonably go.
 
  3. Work back from a final price to determine your initial offer
  Know in advance the most  you’re willing to pay, and with your agent work back from that number to  determine your initial offer, which can set the tone for the entire  negotiation. A too-low bid may offend sellers emotionally invested in the sales  price; a too-high bid may lead you to spend more than necessary to close the  sale. 
 
  Work with your agent to evaluate the sellers’ motivation and comparable home  sales to arrive at an initial offer that engages the sellers yet keeps money in  your wallet.
 
  4. Avoid contingencies
  Sellers favor offers  that leave little to chance. Keep your bid free of complicated contingencies,  such as making the purchase conditional on the sale of your current home. Do  keep contingencies for mortgage approval, home inspection, and environmental  checks typical in your area, like radon.
 
  5. Remain unemotional
  Buying a home is a  business transaction, and treating it that way helps you save money. Consider  any movement by the sellers, however slight, a sign of interest, and keep  negotiating. 
 
  Each time you make a concession, ask for one in return. If the sellers ask you  to boost your price, ask them to contribute to closing costs or pay for a home  warranty. If sellers won’t budge, make it clear you’re willing to walk away;  they may get nervous and accept your offer.

  6. Don’t let competition change your plan
  Great homes and those  competitively priced can draw multiple offers in any market. Don’t let  competition propel you to go beyond your predetermined price or agree to  concessions—such as waiving an inspection—that aren’t in your best interest.
 
  Read more: https://buyandsell.houselogic.com/articles/negotiate-best-house-buy/#ixzz22xjLwLF2