How to Negotiate the Best Home Deal
Posted Dec 5th 2023
The real estate market is highly competitive, especially in hot markets. As a buyer or seller, it’s important to do your research and come prepared to the negotiating table in order to secure the best possible deal. Here are some key tips and strategies for negotiating to get the home you want at a price you’re happy with.
Understand the Market
Before making an offer or setting your asking price, take the time to understand the dynamics of the local real estate market. Look at recent sales reports to see what similar homes in the area have sold for. Pay attention to factors like price trends over the past few months, average days on the market, and inventory levels. Knowing the key market data points will allow you to price your home competitively as a seller or make a strong offer as a buyer based on comparable properties.
Set Your Budget and Price Points
Do your financial homework upfront. As a buyer, get pre-approved for a mortgage so you understand your exact budget and borrowing limits. As a seller, research recently sold homes in the area to determine a fair listing price. Give yourself room to negotiate down slightly as a seller or up slightly as a buyer. Coming in too high or low initially will weaken your negotiating position.
Use an Agent You Trust
Consulting with a local, experienced real estate agent is invaluable when it comes to negotiations. A smart agent who knows the market well can provide valuable, unbiased advice about pricing, comparable properties, and negotiating strategies tailored to your specific deal. They act as an expert representative who has your best interests in mind throughout the process.
Whether you’re buying or selling, arrange for thorough home inspections early on. Use any findings from the inspection report to support asking for repairs, credits or a lower price if needed. As a seller, be proactive by fixing any issues pre-sale. Addressing problems upfront removes negotiation leverage the buyer may try to gain later on.
Make a Fair Offer
As a buyer, submit an offer that reflects the true market value of the home based on your research. Come in slightly under your high-end budget to allow room for negotiations. Your offer should show you conducted due diligence by including contingencies like financing and a home inspection period.
Don’t get rattled if your initial offer is countered. Be prepared to negotiate back and forth a few times. Study the counteroffer closely for any unwarranted requests and have your agent address them. In return, you can propose additional contingencies be removed or offer more Earnest Money as you near an agreement.
Successful negotiations are about keeping business and emotions separate. Try not to get overly attached to a particular home or deal. If negotiations stall, be willing to say “no” and walk away if need be rather than conceding major sticking points or your financial limits. Coming across as flexible yet decisive will maximize your bargaining power.
Get it in Writing
Throughout negotiations, document all agreed-upon terms, date changes, requests and concessions in writing – either via email exchange or the official purchase agreement. Verbal discussions can be forgotten or misconstrued later on. Having a clear paper trail of mutual understanding prevents future conflicts or misunderstandings from arising.
Be Patient but Timely
The negotiating process may require patience as multiple offers are weighed, or aspects like financing or inspections are approved. However, any signed purchase agreements should have clear deadlines built in for contingencies, financing or the deal itself. Avoid leaving the transaction in limbo longer than necessary by requesting prompt responses and information from all parties involved.
With diligent preparation, strategic positioning and persistence throughout negotiations, buyers and sellers alike can maximize their chances of securing the best possible deal. Understanding neighbourhood trends, conducting due diligence and working with a trusted advisor paves the way for smooth, successful negotiations.
Reach out to the Baird Team Today!
Are you looking to buy or sell real estate in this competitive market? Let our expert local real estate agents at the Baird Team handle negotiations on your behalf. With in-depth market knowledge and proven strategies for success, we’ll work hard to secure you the best deal. We can help you with buying homes in areas such as Courtice, Bowmanville, and Oshawa.
Contact us today to discuss how we can help you negotiate to your advantage.