Whether you’re buying your first home or you’re a seasoned investor, negotiating a deal is one of the most stressful parts of the process. Everyone is always looking for a good deal, especially on real estate! And skilled negotiation is a key factor to helping land a great property at a fair price.
Buying a home is nothing like buying a new 4K TV or new patio set. Negotiations are an expected and necessary part of the process because most sellers list their homes at a higher price than they actually expect to get. Knowing how to negotiate well can get you an even better deal.
So, what’s the secret to the best negotiation tactics? What are the best ways to approach a seller? How should I negotiate with offers and counter-offers? Is there a time limit for making an offer? Here are some tips for negotiations and objections for homebuyers in Boston.
Determine What You Consider a Win
The first of our tips for negotiations for Boston home buyers involves determining exactly what you’ll consider a “win.” You simply must go into the negotiations knowing what you want to accomplish – otherwise, you’ll be at a disadvantage.
Before ever making an offer, determine your priorities.
- Is getting the lowest price number one in your book?
- Or, are certain concessions more important?
- Is closing by a certain date at the top of your list of priorities?
Whatever it is, know your priorities before you begin negotiating.
If a quick closing timeline is your top priority, you’ll likely have to compromise in other areas. You may not, in this case, be able to swing a price reduction for roof repairs. But it won’t matter because it will still be a win for you.
Still, you don’t want to give up too much in order to get what you need and want. This is where an experienced local agent can be an invaluable asset – to help you ensure your win is really that. To find out more about this, call (617) 657-9811.
Understand the Local Market
And any list of tips for negotiations and objections for homebuyers in Boston should include an exhortation to understand the local market conditions. This applies particularly to the amount of buyer interest in a home.
The amount of room you have to negotiate is inversely proportional to the amount of interest in the home. If many buyers have expressed interest in the home and there are more offers, you’ll have less room to negotiate. If your local real estate market is cold, you have more room to ask for concessions, a lower price and repairs. Unfortunately, you won’t find too many unpopular real estate markets or property types these days given the amount of buyer competition and low interest rates.
Again, your local agent can be a huge asset here. She can get a feel for buyer interest and, as a result, will know exactly how to successfully conduct negotiations.
Leverage the Inspection
Another of the most important tips for negotiations for Boston home buyers is to be sure to get an inspection and then leverage the inspection results. You’ll get a copy of the inspection report, and you can use it to get a better deal.
You can ask the seller for concessions if the home inspection reveals any problems that are deal breakers for you. You may want to ask the seller to fix a problem, give you a credit for closing costs, or lower the price. You can even use the inspection results to cancel the sale if your offer includes an inspection contingency or if the inspection reveals a major home issue.
The inspection results can be a key element in negotiating the final selling price. If you’re unsure about this, be sure to consult your agent to get the most leverage.
Communicate Through Your Agent
Of all the tips for negotiations, this one may be the most important.
Always communicate with the seller and the seller’s agent through your agent.
And here’s why this is such a paramount one of the tips for negotiations for Boston home buyers – there is a lot of real estate jargon to master.
Remember that many of these terms have legally sensitive definitions and are often conflated with one another. For example, many buyers don’t fully understand the difference between an appraisal and an inspection. You may not get the answer you need in time if you contact a seller asking about appraisal results when you really intended to reference inspection results.
Your real estate agent knows how to phrase questions and requests in a way that doesn’t put your interests in jeopardy. Plus, real estate agents fully expect to be dealing with other agents, and in most situations prefer dealing with other agents than the opposing buyer or seller directly.
Don’t Forget Closing Costs
Closing is another part of the transaction where you can score a big negotiations win. Closing costs are the next biggest upfront expense after the down payment.
A good negotiating strategy, then, is to get the seller to pay some or all of the closing costs. Difficult in a tight real estate market, but not impossible!
And here’s why we include this among our tips for negotiations – closing costs on a home purchase can add up! This means that these fees can potentially present a significant barrier between you and your home purchase.
Get the Real Estate Agent Edge
When it comes to buying a home, the best deals are found through negotiation. Yet many home buyers feel apprehensive about negotiating because they fear offending the seller or making the seller question their interest in the property. Some buyers also avoid negotiating because they aren’t clear on their priorities – what is most important to them and which aspects of the deal they should try to leverage.
Negotiation is important and expected when buying real estate!
These are all important tips for negotiations, but they are only a few of the things you can do to get a better deal. Another one is to use a qualified local real estate agent who is an expert in the local market. Your agent will be your advocate and can bring to bear her extensive negotiating expertise and experience. To make the most of these negotiation tips, contact us today at (617) 657-9811.
Boston and Beyond – Just Hit the Market!
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