Presented By:

Sharpening Your Home Buying Negotiation Skills

News | 30th Jun 2012

Here are four common negotiation misconceptions about buying a home, along with some helpful tips to protect your bank account.

When it comes to negotiating, if you’re new to the home buying process, you may not be as good at it as you need to be and that could end up costing you big-time, quite literally—when you finally do sign on the dotted line.

Take a look at the following negotiating misconceptions, and if your thought process tends to run along these lines, you may need to hone your skills in the home buying arena before starting the process.

Negotiating misconception #1: Jump right in and start looking at homes!

The adage “patience is a virtue” definitely applies when it comes to buying a home. Most of the negotiating process is about preparation and gathering information. For instance, you want to know what the asking price is for homes in the community and what their being sold for. You also want to find out the value of certain features such as fireplaces, views and other amenities, along with neighborhood schools, if applicable. Also, don’t fall for staging; be sure to look behind the bling.

You should quiz yourself, too, by asking what your deal-breakers and must-haves are in a home. You also want to figure out a spending limit that’s within your comfort zone.

Do all of this before meeting with a real estate agent. Two of home buyers’ biggest mistakes is talking with a friendly real estate agent too early and being way too open for their own good.

Negotiating misconception #2:  Your real estate agent is your buddy, so go ahead and tell him or her what you can spend.

Never forget that your agent is ultimately there to sell homes. When it’s time to meet with one, don’t tip your hand. In other words, don’t divulge your comfortable spending limit or your upper spending limit, either.

However, you do need to give some indication of the price range that interests you, so it’s good to go with a figure that’s 5 to 10 percent below your comfortable spending limit, knowing that you can always increase it if you find an exceptional home.

Negotiating misconception #3: When you see a home that you like, express interest.

Usually that’s not the best idea. You don’t want to tell the seller’s agent or the seller how you feel when you’re walking through the home because emotion tips them off that you’re excited, which can play in their favor. That doesn’t mean you have to be insulting, in fact, being too critical of a home can hurt your chances if the seller takes offense. So you don’t want to be rude yet too effusive either.

Asking questions is fine though and is actually a very important part of the process. You can ask the five, same questions of any home that you look at:

  • How long has the owner/s lived there?
  • What repairs have been done to the property?
  • Why is the owner selling?
  • What’s the asking price?
  • How soon does the seller wish to close?

Negotiating misconception #4: A home is a home; it doesn’t matter who’s selling.

Who’s selling a home and why, can matter enormously in a negotiation. Do the owners need money fast or are they getting divorced? Has the owner just passed away and do their children want to sell the home quickly?

Also learn as much as you can about the owner. It’s a good idea to talk to neighbors about the community anyway and while you’re doing that, you can always throw in a polite question or two about the owner.

Final negotiating tip: If you’re fairly confident of your abilities, deal directly with the seller’s agent, instead of going through a buyer’s agent. One of the advantages of dealing with a seller’s agent is that the person may disclose more information than he or she should. You may be able to glean invaluable information this way which could ultimately help in negotiating a lower price.

So consider yourself a lean, mean negotiating machine to home sellers and venture forth holding your cards close and your wallets closer!

Leave a Reply

Your email address will not be published. Required fields are marked *

Share & Print This Post
Choose A Topic Below

How much is your
Home worth?

Looking for a home? Talk to an Area Expert...
  • This field is for validation purposes and should be left unchanged.
Follow Us

3 days ago

Maxine & Marti Gellens, Berkshire Hathaway HomeServices

PRICE IMPROVEMENT
$859,000
This beautifully appointed townhome rests in a tranquil location within The Villas of Whispering Palms. A gated entry courtyard welcomes you into elegant living spaces offering engineered wood floors, a fireplace, generous granite kitchen with an abundance of cabinetry, and a slider opening onto an enclosed patio perfect for lounging or dining al fresco. Upstairs you will find all 3 bedrooms with vaulted ceilings including the master suite with a spacious walk-in closet, fireplace and private balcony.

4062 Avenida Brisa
Rancho Santa Fe, CA 92091
3BD | 2BA | 2,062 sq.ft.

#whisperingpalms #rsf #ranchosantafe
...

View on Facebook

7091 Caminito Valverde
La Jolla, CA 92037

4 Beds | 3.5 Baths | 2,618 SqFt

Ocean views and a tranquil, park-like setting surrounded by vast open space are yours to enjoy from this exceptionally private home in La Jolla Summit. Upon entry you’re welcomed by sun-filled living areas with an inviting indoor-outdoor flow consisting of a spacious living room with a fireplace, formal dining room, and an architecturally designed chef’s kitchen adjacent to the family room. All 4 bedrooms are conveniently situated upstairs including the generous master suite showcasing vaulted ceilings and an incredible view of the ocean. Serene outdoor spaces enable effortless entertaining from its extra-large, low maintenance yard with four separate patios and a hot tub. Residents of La Jolla Summit benefit from community amenities comprised of a clubhouse, 2 pools, 3 tennis courts, a fitness center, kid’s playground, basketball, indoor racquetball, an indoor spa and LOW HOA fees. Enjoy easy access to the freeway, beaches, as well as Village shops and eateries. This is a rare offering in an enviable location that only one family will be lucky enough to call home.

#lajolla #lajollarealestate #lajollasummit #sandiegorealestate
...

View on Facebook

6 days ago

Maxine & Marti Gellens, Berkshire Hathaway HomeServices

Check out this beautiful work in progress! Our landlord commissioned @sojournerartist to paint this mural in our building breezeway. How cool is that. We’re already enjoying the new life and positivity it’s bringing by our office.
#lajollamurals #lajollamural #lajollaarcadebuilding
...

View on Facebook