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Negotiating Tips for Home Buyers

By ResidenceBuy India  |  0 comments   |  2634 views  |   Feb 24 2012

Understand local property trend:
The key to bargaining is to be well informed about the property market. If you are more informed than the seller then you can avoid the hype in an overheated market, or get a steal when your research suggests that the prices are going to rise.

Develop personal relationship with sellers:
Trust is a key issue in this transaction and goodwill is a valuable asset to have. Note that the seller knows more about the property that you do. If you appear to be a fair and genuine buyer then the seller will less likely take advantage of you.

Understand the timeline/urgency of the seller:
Understanding the timeline is very important in the buying process. If the seller is in a hurry then it is more likely that you may get a good deal if you play your hands well. §Maintain your composure: You lose valuable bargaining power if you are too eager to buy. This will make the bargaining position of the seller much stronger and you may miss out on valuable discounts.

Keep your price point to yourself:
The buying process goes through several rounds of negotiation. It is more important to find out what is the minimum price the seller wants for the property. Revealing your price early exposes your hand. If your price is too high then the seller's position becomes stronger and further negotiation on discounts goes against you. If your price is too law then the seller will walk away from negotiation right from the start.

Know what you care for most:
It is useful to have your own priorities right. If you like the house and think that the price is more or less right then engage in some give and take. The seller may not offer you cash but you can talk yourself into some additional home improvements discount.

Take pictures to avoid future dispute:
The house you visit may not be the same house you buy.Taking pictures is a proof to what you agreed to buy. Sit down with the seller with the pictures so that both of you agree on the details. This will save you from a lot of headache in the future. §See how far seller will g Judge the limits to which you can push the seller. If you like the house then this is more important. You don't want the seller to walk away because of some minor negotiation breakdown. Again, developing a personal rapport with the seller is the key.

Assume that the world will not end if the deal falls through:
For best negotiation you have to believe that the deal may fall through and you may have to move on to a new house. This attitude makes you feel less needy and puts you in a better bargaining position.  

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