Negotiate Your Best Buy On DFW Home

Below are six great tips for negotiating the best prices for homes. Bonus tip: Keep your emotions in check and your eyes on your end goal and you can pay less when purchasing your next home.

1. Ask a lot of questions:

Ask your Realtor for information concerning the seller’s financial and selling motivations. Are they facing a divorce, foreclosure or a short sale? Have they already purchased another home or relocated to another area making them open to accept a lower sales price to avoid paying two mortgages? Has the home been on the market for a long time, or was it just newly listed on the market? Have there been other offers? If so, why did they not close? The more signs there are that sellers are eager to sell, the lower your offer can reasonably be.

2. Get prequalified for a mortgage

Getting prequalified for mortgage financing helps prove to sellers that you are serious about buying and qualified to buy their home. Even in the hot market it will push you to the head of the pack when sellers are choosing among many offers. They will go with buyers who are a sure financial bet, not with those whose financing may flop.

3. Work back from your final price to determine your offer

Know in advance the most you are willing to pay for the home and work back from that number to determine your offer. This can set the tone for the entire negotiation. A bid that is to low may offend sellers emotionally invested in their sales price. A bid that is to high may lead you to spend more than is necessary to close the sale. Work with your agent to evaluate the sellers’ motivation and comparable home sales to arrive at an initial offer that engages the sellers yet saves money in your wallet. When dealing with you won’t have to worry about the banks emotions, however.

4. Avoid contract contingencies

Usually, sellers will favor offers that leave little to chance or risk. Keep your bid as free of complicated contingencies as possible, such as making the purchase conditional on the sale of your current home. Do keep contingencies for mortgage approval and home inspections typical in your area, like radon if they house has a basement.

5. Don’t get emotional

The reality is, buying a home is a business transaction, and treating it that way helps save you money. Consider any movement by the sellers, however slight, a sign of interest, and keep negotiating. Each time you make a concession, ask for one in return. If the sellers ask you to boost your price, ask them to contribute to closing costs or pay for a home warranty. If sellers won’t budge, make it clear you’re willing to walk away, they could get nervous and accept your offer.

6. Don’t let competition change your plan

Great homes and those competitively priced can draw multiple offers in any market. Don’t let competition entice you to go beyond your means or agree to concessions, such as waiving an important inspection, that isn’t in your best interest.