Sir David Frost, English Journalist and comedian, once wrote, "Diplomacy is the art of letting someone else have your way," and a measure of diplomacy is certainly an essential ingredient in any negotiation in which you wish to secure the most favorable outcome. Consider these additional keys to successful home buying negotiation.
Know the Market- At any given time, your local real estate market may favor buyers or sellers. If you're planning to purchase a home, a buyers' market will afford you greater negotiation power because the seller will have fewer offers from which to choose. In a sellers' market-where offers tend to be plentiful- agreeing to a quick closing may still provide you with the upper hand.
Don't Disregard Concessions- Most buyers are obsessed with price when purchasing a home. While haggling a lower figure may may be possible, there are easier ways to effectively reduce your costs. Known as concessions, they may include seller's contributions towards your closing costs, home improvements and repairs.
Get Pre-Approved for a Mortgage- There are countless tales of real estate deals falling through because a loan failed to close. Smart sellers want to avoid such a situation, and buyers with pre-approval documents from lenders are more attractive as a result.
Make Friends With an Expert- you can buy a home without a buyer's real estate agent;. But you're unlikely to secure the most favorable outcome should you choose to do so. Think about it: in a transaction where one side has expert assistance and the other does not, who will have the negotiating advantage?
Keep Your Cool- Don't let your emotions get in the way. You're much more likely to get the home on your terms if you practice diplomacy, are open to compromise, and treat the seller and their real estate agent with nothing but respect.
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