After finding a suitable home with all your preferred characteristics, it all comes down to closing the sale with a good bargain. Your new home is surely going to be one of the most valuable and expensive assets in your lifetime. You must negotiate with the seller effectively, so that you don't end up paying more than necessary. Negotiating before buying a house is an art. And to master this art, you must read the following tips:
Do the Research
Before even looking for houses in Edmonton, you must do a little homework. Find out the average price of various types of houses in your preferred neighborhoods. Understand the real estate market and the extent to which negotiations can happen. This research will help you in making the right offer and negotiate accordingly.
Know your Finances to Negotiate
It is important to know your upper and lower limits while negotiating for houses. To identify your upper and lower limits, you must know your possible finances. Find out the available mortgages and loans that you can get. On the basis of what you can afford, you can set the limits.
Start with a realistic offer that is fair. Do not make too low an offer or else you will lose the negotiation. Propose a price that even the sellers would find feasible. Both the parties can obviously negotiate and come to a final price.
Avoid Using a Range
By proposing a price range, you are telling the seller that you are willing to close the deal at any price within the range. The seller will most likely go for the higher price for his/her personal profit. For instance, if you say you are comfortable with anything between $20,000 and $25,000, the seller would obviously choose the limit that is best suited for him.
Don’t Close Too Early
Never agree to an offer too quickly just because you want to get a house as soon as possible. Such statements can signal the seller that you are only interested to get done with the deal quickly rather than finding a house that actually matches your expectations. Buying a new home can be a time-consuming process and so can be the negotiation stage. Thus, take enough time to communicate and negotiate until both the parties agree on a price.
Taking too long to respond to the seller can make them feel that you are not interested in buying the home and are just playing around. Delays in responding also leaves room for other potential buyers to step-in and put forth their offers. Hence, avoid taking too long to respond to the offers, calls and emails of the sellers.
However good your negotiation skills be, when it comes to real estate, it is always advisable to hire a real estate agent.