Featured News 2012 The Art (and Right) of Negotiation

The Art (and Right) of Negotiation

People often forget that everything in real estate is negotiable. According to the Real Estate Washington Post, sales are currently on the increase and mortgage rates are at an all-time low. Yet it is still a buyer’s market, and you have the right to haggle and debate while you choose what sort of home you would like and how much you can afford to pay for it. Home buyers, especially those who have never bought a home before, often underestimate the power and importance of negotiating. Some people may even be hesitant to barter because they don’t have enough experience with it. Here in America, bargaining is not a common part of our society. When it comes to purchasing a home, it’s a good idea to brush up on your haggling skills so that you can get the best deal possible on your property.

As a buyer, never hesitate to make a low offer on a house. Even if it is embarrassingly low compared to what the home is listed at, it is always best to work your way to the middle then to start too high and not be able to lower a home. Sellers list their house at high prices, expecting you to meet them at a lower rate. The real estate broker or agent who is helping you will help you to understand that you truly can submit any offer that you would like to. A seller has three options after he or she receives this reduced rate from the buyers’ side. The seller can reject it, accept it, or make a counter offer. The latter option is normally the most typical. If your offer is rejected, and you still want the home, then you could try inching your way to a figure that is closer to the buyer’s asking price.

Once you have signed your contract, that shouldn’t be the end of your negotiations. Oftentimes people think that once the house is purchased all prices are official. However, you still need to choose what type of mortgage loan you want and which lender you will go with. Shop around, and never just take the first option that you find or that your real estate broker recommends. Sometimes it pays to be a little bit picky. Once you find your lender, it is time to sign your contract. Before you do so, have a home inspector come and peruse your new property to make sure there are not any serious flaws that you missed. Sometimes you can create an inspection contingency that says that if there are any problems with the house you can refuse to sign the contract. You can also create a contingency that says that you will list any problems that the inspector finds and the seller has a short period of time to agree to fix those areas or the contract will be off.

When choosing an inspector, remember that there are plenty available. Don’t go with the first inspector you find. Instead look for someone who does quality work at an acceptable price. Even if your real estate agent is encouraging you to speed up your buying process, you don’t have to. Remember that this is your money and your home, so you shouldn’t feel pressured. By being careful and making sure that you are getting the best deal, you can rest assured that you are not being cheated on any level when making this very important purchase. If you run into trouble with your transaction or find issues with the property after you buy it, then you should talk to a real estate attorney.

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