Once you have discovered the perfect first home for your family or the perfect fixer-upper for your retirement project, it’s time to negotiate so that the price is equally perfect! Negotiating a home price can be complicated, but with a few tips and a little preparation, you will be able to get the right price for the right home.
Is it a Buyer’s Market?
If you are purchasing your home in a buyer’s market, you have the power! A buyer’s market exists when there are more available homes on the market than buyers looking to purchase. Because buyers are scarce, homeowners who need to move will be much more likely to budge on price and make big concessions just to sell the home. Negotiating in this time isn’t very difficult because you will be able to get most of the things that you want. Make your initial offer a minimum of 10% underneath the price you want to pay for the home, in addition to asking the seller to cover closing costs. While you might not get everything you want, chances are you will get a true negotiation instead of a flat out no. Make sure not to go too low if you don’t want to risk walking away from the home.
Is it a Seller’s Market?
A buyer’s market is an easy time for negotiation on your end and a seller’s market is an easy time for negotiation on their end. You have much less leverage due to the availability of qualified home buyers who also might be interested in the house. Make an offer that doesn’t come with many contingencies or demands and stick close to the asking price. Beyond negotiation, make sure to make your offer very quickly so that the home doesn’t get snatched up before you can even make an offer.
Is it a Balanced Market?
A balanced market can be great for negotiation on both ends of the table. As a result, the negotiation phase can take much longer than in a buyer’s or seller’s market. There is not the sense of urgency that there is during either, so you can take your time when making your offer and contingencies. Start by offering slightly less than the asking price and whatever terms you think are appropriate, but be prepared to meet halfway.
A Title Company You Can Trust: Colony Title
At Colony Title, we will help you through the process of getting your property’s title and help you avoid the pitfalls of hidden costs while you buy your home. We are also well trained in identifying any and all errors in public records and helping you resolve them. We specialize in real estate title insurance in both Maryland and Washington, D.C., and we will perform an expert title search, check through all past documentation, and examine records for any fraud or forgery. For more information on how we can get you into the home of your dreams, contact us online or give us a call at (410) 884-1160. To get more updates on housing markets and how to get into your home, follow us on Facebook, Twitter, LinkedIn, and Google+.