The contents of this article were contributed by Yanie Johan, co-founder of IQI iRealty.
Did you know you could get more, more, more stuff in your new home?
All you have to do is ask!
However, of course, we understand that it’s easier said than done. One wrong sentence may lead to misunderstandings and disappointment! So tread lightly.
In this article, IQI iRealty Group Principal, Co-Founder and Team Manager Yanie Johan gives you 5 tips on how to negotiate with homeowners before you receive the keys to your new place.
Understanding the Home Buying Process
Understanding the home buying process is crucial for both buyers and sellers. A real estate agent can guide buyers and sellers through the process, ensuring a smooth and successful transaction.
To negotiate with your homeowner, research the current market value of your property, understand your homeowner’s motivations, clearly communicate your needs, be prepared to compromise, present a well-supported case with data, and aim for a win-win solution by discussing options like rent increases, lease terms, maintenance responsibilities, or potential improvements to the property that benefit both parties
Buying a home is a significant investment, and knowing what to expect can make the journey less daunting.
From the initial offer to closing costs, each step requires careful consideration and planning. By working with an experienced estate agent, you can navigate the complexities of the property purchase with confidence, ensuring you get the best deal possible.
Researching Local House Prices
Researching local house prices is essential for determining a fair price for a property. Buyers and sellers can use online tools, such as property websites and real estate agent reports, to gather information on recently sold comparable properties in the area.
This information can be used to make an informed offer or to negotiate a better price. A mortgage broker can also provide valuable insights into the local market and help buyers determine their budget.
Knowing the local market is key to making a smart investment. By understanding the house prices in your desired area, you can set realistic expectations and avoid overpaying.
Estate agents have access to comprehensive data and can offer expert advice on what constitutes a fair price, helping you make a well-informed decision.
Preparing for Negotiation
Preparing for negotiation is key to getting the best price for a property. Buyers and sellers should research the local market, understand the property’s value, and determine their budget.
A real estate agent can help buyers and sellers prepare for negotiation by providing guidance on the negotiation process and offering advice on how to create a win-win situation. Buyers should also consider getting pre-approved for a mortgage to demonstrate their seriousness to the seller.
Negotiation is an art, and being well-prepared can make all the difference. By doing your homework and understanding the local market, you can enter negotiations with confidence.
A trusted estate agent can offer invaluable support, helping you strategize and present a compelling case to the seller. And remember, getting pre-approved for a mortgage shows you’re a serious buyer, which can give you an edge in the negotiation process.
5 Things to Ask For When Negotiating with Homeowner
1. Price
Many people may not know that we buyers can negotiate the price. If you want your dream home, you’d definitely want the best price for it!
In order to do this effectively, you have to do some research on the house’s market price or value, including understanding the asking price and how long the property has been on the market.
I mean, it’s a long-term investment – an important asset. We wouldn’t just want to throw our money without making some ‘calculated’ decisions, won’t we? (Pun not intended)
Try to negotiate with your homeowner to get the best price. If you do it right, you’d be able to save some money on the purchase price that you can use to buy furniture instead (more on that later!).
2. Deposit and Closing Costs
Deposits are a no-brainer. What if the buyer suddenly bails, right?
However, some homeowners fear this so much that they’ve marked up the deposit up to 10%!
And that’s not including the other fees that are going to come along.
One of the things you may want to negotiate with the homeowner is the deposit of the house. You might just be able to save big-time there.
3. Early access to the home
Okay, you’ve got your papers done, you’ve settled all the papers – now it’s time to move in! Or is it…?
If you’re looking into making any renovations, perhaps you want to move your furniture in ahead of time, or maybe you need to leave your current home quickly, it’s worth asking the owner if you could move in earlier.
If there’s still a long way to go before you get to move in, you can negotiate with the owner to move in early!
4. Request for Repairs
Before moving in to your new place to call home, you’d want to make sure everything is in tip-top shape.
You wouldn’t want to move in uncomfortable or unhappy, would you? Check your home and see if there’s anything that needs to be repaired.
You can ask the homeowner to double check as well, and they might just get it fixed before you move in!
Then you can enter your new home in peace and comfort, without worrying about any existing damage.
5. Ask to Gift Existing Furnishings
You’ve negotiated the price, move-in date and renovations and repairs. What else can be negotiated?
You can also negotiate with the owner to gift you the existing household items!
Perhaps there’s some existing home items include furniture such as sofas, dining tables, kitchen cabinets, curtains, kitchen appliances and so on.
But do ask politely – the owner will give you with discretion. You might just be lucky enough to score a generous owner! Remember, you won’t lose anything from asking.
Creating a Win-Win Situation
Creating a win-win situation is essential for a successful property sale. Buyers and sellers should be open to compromise and willing to be flexible. A real estate agent can help buyers and sellers find mutually agreeable terms, such as a fair price, reasonable closing costs, and a suitable settlement period. By working together, buyers and sellers can create a win-win situation that benefits both parties. A buying agent can also help buyers navigate the negotiation process and ensure they get the best price for their dream home.
The goal of any negotiation should be to find a solution that satisfies both parties. By being open to compromise and working collaboratively, buyers and sellers can achieve a fair and mutually beneficial agreement. Real estate agents are skilled in facilitating these discussions, ensuring that both sides feel heard and valued. With their expertise, you can navigate the negotiation process smoothly and secure the best possible outcome for your property purchase.
Should you negotiate with the homeowner or a real estate agent?
First of all, why do you think it’s better to negotiate with the home owner than a real estate agent before buying a house?
You might think that it’s cheaper if you negotiate with the owner yourself. However, not many home owners who want to deal directly with buyers out of a desire to protect privacy and fear of loss.
Sometimes buyers want to buy a house at a low price that doesn’t make sense. The owner is also worried that the buyer just wants to play around and doesn’t want to waste time. Additionally, the presence of other buyers can create a competitive environment, making it harder to negotiate directly with the homeowner.
So, the owner would prefer that you deal directly through a real estate agent to buy a house. Because real estate agents better understand the house price that fits your budget.
From there, the real estate agent will ensure a “win-win situation” between both the buyer and the home owner so that both parties will not lose.
However, if you want to negotiate directly with the owner, make sure you have a friendly real estate agent!
There are actually benefits if you negotiate through a real estate agent.
They’re more knowledgeable about property prices, the owner’s situation, and also how to persuade the owner to get the price of the house you want.
So, if you want to buy a house, be sure to deal through a real estate agent you trust!
The contents of this article were contributed by Yanie Johan.
Yanie Johan is the co-founder of IQI iRealty with 10 years of experience in real estate. She is a recipient of several awards for outstanding performance in team performer and group awards.
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FAQ
1. What’s the most you can negotiate when buying a house?
The most you can negotiate when buying a house varies depending on market conditions, the seller’s motivation, and the specific property. In a buyer’s market, you might negotiate a lower price, closing cost assistance, repairs, upgrades, or even personal property like appliances. However, in a seller’s market, your leverage is reduced, and negotiations may focus on smaller concessions or simply securing the property at a reasonable price. The condition of the house also plays a role; a home needing repairs offers more room for negotiation than a move-in ready property. Ultimately, the “most” you can negotiate is what the seller is willing to accept.
2. How to negotiate the purchase of a house?
Negotiating the purchase of a house involves several key steps. First, research comparable sales and understand the local market. Obtain mortgage pre-approval to demonstrate financial strength. Work with a real estate agent who can guide you through the process and advocate for your interests. Make an initial offer based on your research and budget, and be prepared to counter-offer. Focus on key points like price, closing costs, repairs, and contingencies. Maintain open communication with the seller or their agent, and be prepared to walk away if the terms aren’t favorable.
3. How do you politely ask for a lower price?
Politely asking for a lower price involves framing your request respectfully and backing it with data. Acknowledge the asking price but explain your reasoning, citing comparable sales or needed repairs. For example, you could say, “We love the house, but based on recent sales in the area, we’re prepared to offer [lower price].” Or, “We’ve noticed some needed repairs, and would like to adjust our offer accordingly.” Avoid being demanding or accusatory. Focus on creating a win-win scenario where both parties feel they’ve reached a fair agreement.
4. How to Use Market Research to Your Advantage in Home Negotiations
Market research is crucial for successful home negotiations. By analyzing recent sales data of comparable properties (comps), you can determine a fair market value for the house you’re interested in. This data allows you to make informed offers and justify your position during negotiations. Understanding market trends, such as whether it’s a buyer’s or seller’s market, helps you gauge how much leverage you have. Use this information to confidently negotiate a price that aligns with market realities.
5. Negotiating Home Repairs: How to Get the Best Deal After an Inspection
After a home inspection, you can negotiate repairs or a price reduction based on the findings. Prioritize major issues that affect safety or structural integrity. Present the inspection report to the seller and request specific repairs or a credit towards closing costs. Be reasonable and focus on essential repairs rather than minor cosmetic issues. Your real estate agent can help you navigate this process and negotiate a fair agreement with the seller. If the seller refuses to address significant issues, you may consider walking away from the deal.
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