Buying a house is exciting, but it also comes with a lot of stress about finding the right one, in the right neighborhood, with the schools, and of course, at the right budget. When you do find the house you’re looking for, don’t get too excited just quite yet. Putting in an offer for a house, and then the possible negotiating process can take some time, and in the end it may ultimately not work out.
When you work with our experienced real estate agents in Sedona, you can be sure that they will do their best to get you the house you love. But there are some cases when strong negotiating skills are necessary, and that’s what Brian & Cindy Real Estate has to offer. After years of working in the real estate industry, we have come to love helping the homebuyers we work with to buy a house that is in their budget. And to make that happen, we will negotiate a price that is fair. Learn some negotiating tips that we think every homebuyer should know, and get in touch with us today. We’ll be happy to show you around Sedona.
Negotiating Tactics For First-Time Homebuyers
Closing costs can range from 2% to 5% of the purchase price, which can be a significant sum of cash. And for many first-time homebuyers, this can come as a surprise. However, closing costs can often be negotiated into the deal, where the seller pays some or even all of the closing costs. This negotiating tip can help homebuyers have some extra cash for renovations or updates on the home. Or, if larger repairs are needed, the seller can offer a ‘credit,’ where the seller pays the closing costs and the money saved on the buyer’s end can be used for the repair.
Home Warranty and Inspection-Related Repairs
Whether it’s a new home or not, it’s a good idea to negotiate a home warranty for at least a year, which can cover certain systems like heating and cooling, plumbing, or appliances. Your real estate agent should also negotiate inspection-related repairs. After an inspection, if there are certain issues found (especially safety issues), the repairs can be negotiated into the deal. This is one of the many reasons why you don’t want to skip the home inspection.
Closing and Possession Dates
This negotiating tip can be beneficial for both home sellers and buyers alike, and is especially helpful when one or both parties can’t move until they close on another house or their lease isn’t up for several more months. Negotiating the closing and/or possession dates can give everyone some flexibility to figure out their moving situation. For example, if the buyer is moving from an apartment and the lease isn’t up for four months, a deal can be negotiated where the seller buys out the lease, speeding up the process. Sellers often want to get to closing as quickly as possible, and buying out a lease for a few thousand dollars may be worth it.
Furnishings and Household Items
There are dozens of items that can be left behind by the seller to sweeten the deal. While many items hold sentimental value, or the homeowner simply doesn’t want to include an item in the contract, it doesn’t hurt for homebuyers to ask. If there is a light fixture that works great in the space, furniture, appliances, lawn care items, regrouting sinks and showers — if homebuyers don’t want to spend money on furnishing the house or paying for other items that the seller has at the house, then it can potentially be negotiated into the contract. Many of these things aren’t commonly included, but a highly motivated seller is more likely to bend in these areas if it means selling the house.
Price or Mortgage Loan Points
Negotiating the price is almost expected in real estate, but there are some details that many first-time buyers aren’t aware of. The final price of a house for sale can be negotiated based on factors like comparable properties, appraisal results, the status of the neighborhood, the home’s condition, and the real estate market at the time. Homebuyers can also ask the seller to pay loan points on your mortgage. Loan points can be a bit confusing, but essentially it means that the home buyer will save money on interest. This negotiating tactic isn’t extremely common, but it can pay off if everyone can agree on the terms.
Be Careful With Negotiating
An experienced real estate agent will be able to safely navigate the negotiating process, but offering a price that is just too low, or trying to add on too many contingencies into the contract might scare a seller away. This is especially important if it’s a seller’s market and a homeowner has multiple offers to work with. In a seller’s market, it can pay to have a realtor who understands the importance of moving quickly and doing what they can to make their offer more appealing.
Consider Writing a Personal Letter
This can be an especially useful tactic when you know that the homeowner has lived in the house for a long time. Sentimental sellers may find it easier to sell their house to a family when they know who the family is, what their story is, or can even see what they look like. Including a personal letter is an opportunity to tell the homeowner your story, what you love about the house, your future plans, and a picture of you or your family can also be included. When sellers are working with multiple offers, it’s this personal touch that can make your offer stand out.
Expect to Compromise
In an ideal world, a seller will accept an offer that is below your budget, they will agree to make repairs, and even to a quick closing. But in reality, home buyers and sellers will both need to compromise in order for the deal to be successful. When buyers go into a real estate transaction expecting to negotiate and to compromise on some terms, it’s more likely that the process will go smoother and quicker. But it’s also important to push back or even be willing to walk away when your needs aren’t being met. A variety of decisions will need to be made during the negotiating process, and a great real estate agent will be able to help guide you through these decisions.
Buying a house in Sedona is exciting! But it can be challenging finding the right house at the right budget. With these negotiating tactics and a great real estate agent, you will find exactly what you’re looking for at a budget that works for you. Sedona is a beautiful area to live in, so if you’re looking to buy a house, get in touch with the team at Bryan & Cindy Real Estate.