Buying a home isn’t as simple as forking over a check for the list price. Real estate contracts are not “one size fits all” documents and negotiations over contract terms can become intense. Stick to the following negotiation tips to get the most out of your home purchase.
1. Learn as much as you can about the seller
Understanding the seller’s motivations can be key to a successful real estate transaction. Is the seller just throwing his home on the market out of curiosity? Or is the family desperate to sell and move before a new school year begins?
If you know how urgent a homeowner is to sell, you’ll be in a better position to negotiate. Turn to your real estate agent for valuable insight into the seller’s motives. Crafty real estate agents can consult with the seller’s agent to deduce how crucial a sale is. The best real estate agents draft offers that financially reflect a seller’s motivations. To find an experienced and military-friendly real estate agent, contact Veterans United Realty at 800-985-5723.
2. Make a solid offer and show that you’re preapproved
If you’re grasping for the house of your dreams, you don’t want to risk irritating the seller. It’s usually not a good idea to make a lowball offer or one with lots of outlandish contingencies. An insulting offer can result in a seller’s refusal to negotiate. Keep yourself in the game by presenting a respectable first offer.
Don’t forget to show the seller that you’re preapproved for a mortgage. Preapproved buyers are seen as serious and preferential buyers. Talk to a lender who specializes in VA loans early in the process. Veterans United Home Loans can complete your preapproval evaluation quickly and will provide a preapproval letter for you to include with your offer.
3. Have options and be flexible
If you approach negotiations with the attitude that you MUST have a home, you’re probably not going to get the best deal possible. The most powerful buyers have lots of housing options in mind and aren’t ever desperate to purchase. Even if you’ve decided to make an offer on a home, continue your home search. Always have a back-up plan in place and don’t make financial compromises that you’ll later regret.
4. Don’t start a war
While in the midst of heated negotiations, it’s easy to see the seller as the enemy. Priorities can quickly shift from landing a great home to defeating the seller. Don’t turn negotiations into a ferocious battle. Keep a level head and remember that both parties are trying to reach the common goal of a successful real estate transaction.
You’re probably not going to have all of your concessions met. But that doesn’t mean that you’ve lost. If you’ve landed a great home for your family at a good price, you’ve won a great future as a new homeowner.
Answer a few questions below to speak with a specialist about what your military service has earned you.
A VA Loan is a mortgage option issued by private lenders and partially backed, or guaranteed, by the Department of Veterans Affairs. Here we look at how VA loans work and what most borrowers don’t know about the program.
Veterans are turning to their home loan benefit in never-before-seen numbers, driven by rock-bottom interest rates and a surge in refinance interest.