In our consumer society, we tend to accept the prices that people quote for items they want to sell. When we go to the store, we don’t haggle with the cashier. We just accept whatever they charge. That’s okay for small transactions. It won’t make a massive difference in your ultimate wealth. But it will harm you long-term if you make larger transactions. For instance, if you overpay for a house, you could be saddled with a large mortgage that holds you back financially for a long time. It’s critical, therefore, to brush up on your negotiation skills and play hardball. Here are some negotiation tactics for first time homebuyers.
Get Your Finances Sorted Ahead Of Time
Whenever somebody is selling a property, they want to know that the person looking around it can actually afford it and has the money ready to go. So the more you can sort out your personal finances, the better. There are various levels of buyers. The basic buyer is somebody who has money for the deposit and a mortgage pre-approved at the bank. These individuals usually are the most common. The next step up are people who have the cash ready to go. Sellers love this kind of buyer because they know that they’re going to the money immediately. The top level are people who are buying properties to form part of their portfolio. These individuals usually already have substantial assets behind them.
When you sort your finances, you immediately improve your negotiating position. Sellers want people without chains, freeing them up to move whenever they want.
Know The Market
The next thing to do is educate yourself about the market. If you know the way the wind is blowing, you can often use this to your advantage too. But what does having knowledge of the market actually mean? Well, partly, it’s figuring out whether it is a buyer’s or a seller’s market. If there are a lot of buyers interested in the home, then you have less room to negotiate. The seller can simply increase the price until they get the best offer. If, however, it’s a buyer’s market, you may be able to get a substantial discount on the property. But unless you know that ahead of time, you could lose out on savings.
Go Through A Broker
Sites like www.BestOfferKc.com explain that there are people out there who are experts in the market. And they can let you know whether you’re getting a good price or not. In other words, you don’t have to learn the ropes yourself. On many occasions, this type of advice can be invaluable. Instead of heading into the market blind and making a mistake, you can pick up a bargain that serves you for life.
Get An Inspection
Before you even sit down at the negotiation table, it’s a good idea to get an inspection. Doing this, according to www.forbes.com, will dramatically change your negotiating position. You’ll be able to point out all the issues with the property and why the seller should let you have it at a lower price.