Now that you have finalized your dream home and are about to seal the transaction and sign the required contracts, it’s time to get a good deal out of it. The thought of negotiation could get quite daunting and challenging if you are not a pro at it. So how to determine the current industry situation and ultimately, how much to negotiate?
Mainly depending on the state of your local real estate market, and the number of other minor factors are primarily needed to be dealt with. You wouldn’t want to make a deal that scares away the seller or even end up leaving big bucks on the table. Don’t worry! We have enlisted a few tips and tricks on how to sign a negotiable deal that is well received on both ends. To know more, have a look below!
Mortgage Loan Points or Purchase Price
A point to remember before negotiating a deal – keep in mind the conditions of the local real estate market as it will help you with the process throughout. Post this, it is of utmost importance to utilize the pre-paid mortgage points that are helpful both for the seller and the buyer. To pay less in taxes for the property, a must strategy is to pre-pay the buyer’s mortgage points. On the contrary, these pre-paid mortgage points in return reduce down the mortgage interest rate and eventually monthly mortgage payment.
Another strategy to have a win-win outcome is by negotiating with the seller regarding paying off the closing costs. Typically varying from 2%-5% of the overall purchase price, it is quite likely that the seller would agree to the deal to have his property sold out soon.
There are various to-dos on a list as soon as the property gets a deal. From inspection to required repairs, appraiser visiting the property to the approval of the final mortgage – there is a little pressure that the seller is carrying and what is the best you could do at this moment? Be Flexible! Put him off the worries and offer a flexible move-in date. This way empathy wins the situation and the seller likely agrees to your offer.
If the seller doesn’t agree with the above-mentioned criteria, don’t get disheartened. There is another way you could get a fair deal – request the seller to pay off the home warranty that typically lasts for a year and mostly includes major appliances, plumbing and electrical systems. You will want to be on the safer side if your house asks for repair within a year. If that happens – Claim the reward!
If there is a broken sink or the electrical wiring needs major work, it’s time to negotiate a fair price. If there is a particular piece of furniture or décor element that you like or find a great fit in your space, you could ask for it! This could be another way to get a fair share of deals on the furniture.
In the end, always remember to not bring emotions when talking business. So, are you confident enough to negotiate your next dream deal? Keep in mind the real estate market condition and move ahead.