Negotiating home prices in the current economy can nerve wracking, so, we are here to offer a few tips on the best approach for setting mortgage rates and settling on how much to offer when it comes to buying a house.
Do your Homework
That’s right – open up your internet browser and be prepared to do a little studying. One of the best ways potential homebuyers can prepare themselves for the process of negotiation is by conducting a Comparable Market Analysis (CMA), which will reveal the price at which comparable homes in the area sold. Consult with a real estate agent to figure out what houses belong in a CMA, and be on your way to being well-prepared to make an appropriate offer on your future house.
Research your Seller’s Motivation
Though homebuyers are not always made privy to this information, knowing why the seller is putting his house up on the market can make a big difference in how willing he is to negotiate and how much time he has to make a sale. Certain scenarios lend themselves to more bargaining power. Does the seller have to sell because he is relocating for a job, can longer afford his mortgage, or needs to upsize? Or do he simply want to – because he has interest in testing the market to see if his home will sell, is thinking about buying a new house while it’s still a buyer’s market, or otherwise. Luckily for prospective buyers, most homeowners are selling now because they have to – and this can give you leverage in negotiating price.
Don’t Be Late
Just like you don’t want to dawdle in the hallway and get into the classroom after the bell has rung, you can’t waste time when it comes to buying a house. Don’t expend your energy on immovable sellers, and don’t waste sellers’ time with unfair offers. If a seller is not open to hearing about CMAs, it may be a sign that he’s not serious about closing a deal. And if buyers come in with lowball offers, it makes them seem like an undesirable candidate who isn’t truly committed to buying the property at hand.
Keep these tips in mind when embarking on the process of negotiating home prices – it will help you to make informed decisions about price points and to be on your way to owning a new home.
Founded in 1995, Colony Title Group handles in excess of 2000 real estate closings per year in the central Maryland area. Our experienced staff can handle closing transactions from start to finish, from preparing contracts to putting those on the search for a new home in touch with our large network of Maryland realtors. To learn more about our services, please contact the Maryland real estate insurance experts at Colony Title Associates by calling 410-884-1160 or visiting ColonyTitle.com today!