When it comes to purchasing a home, your real estate agent will handle the major work for you. Such as conducting your house research, handling all the important paperwork, writing up your purchase agreement, and negotiating pricing details when you fill-up the purchase agreement. Of course, your seller will negotiate the price on your behalf, but at the end of the day, you will make the final decision on the purchase agreement.
It's essential to know about the things to consider when it comes to negotiating a house price-
1. Know why the seller is moving:
Equip yourself with as much information as possible when it comes to negotiating a house price. If the seller is going through a divorce process, you might assume that selling the home is more important to the seller than getting the best price and the same goes for the sellers who are moving out of state because of their jobs or business purposes. You can use this information at the time of negotiation so that you can get a reduced-price offer than the quoted price on the advertisement.
On the other hand, if the seller renovated his home and may be looking forward to selling out for a better profit. If the seller has a lot of memories associated with the home, they might want to sell their home to someone who will take care of their home. In such scenarios, you could send a personalized letter to the homeowner. This will make your offer stand out and show the seller that their home will be in good hands.
2. Convince the seller to pay the closing costs:
Closing costs are the fees that are paid at the time of closing. Both buyers and sellers are responsible for paying the closing costs. But, as a buyer, the amount of closing cost depends on your negotiation
If the home requires a significant number of repairs, you can negotiate with the seller for offering you a lesser price. When negotiating the house price, you can request the buyers to offer a reduced price to offset the repairing costs. As a buyer, you can also ask for a closing credit. So, now you might be wondering what a closing credit is all about. It’s a cost “credited” to the buyer. Closing credit usually ranges between 2 -5 percent of the total purchasing price.
3. Ask for a home warranty:
A home warranty is an annual or monthly service contract that covers the cost of repairing or replacing costs of covered home appliances and systems that wear down due to regular wear and tear. When negotiating the home price with the seller, you should know if they offer you a premium home warranty plan for at least a year. This can be beneficial for you especially when you know that you have a major leakage in your plumbing system or an HVAC issue after the home inspection.
Now that you know about the three important things that you should ask your seller at the time of purchasing a house, it’s time to make the best house-purchasing move.