Successfully Negotiate a Home Price in Silicon Valley with These Tips
When you are in the precarious process of buying a home, it is natural to feel nervous. Suppose you are unsure how to negotiate house prices with confidence. In that case, this article will show you the process of negotiating and the requirements of some specific tactics that will equip you with knowing what to do for an easier time. Let’s take a close look at how to negotiate house prices successfully and how doing so can save you lots of money.
Continue to read to find out how to successfully negotiate a home price in Silicon Valley.
Can You Negotiate a House Price?
Technically, yes, you can negotiate a house price. Sellers will often list a home with an asking price above its market value to leave room for negotiations. Whether you are a first-time home buyer or you are looking for your next dream home, negotiating a house price is perfectly normal and part of the process. Negotiating house prices will involve a set of strategies, and it is important to remember that you may inadvertently insult the seller by making too low an offer. Negotiating the right way may require patience, organization, confidence, and even some compromise thrown in the mix, and it will require a good understanding of the current housing market.
How to Negotiate House Pricing
Learning the art of negotiating house prices can be difficult to outline because each home sale is different, with a few commonalities, tips, and tricks that are worth keeping in the back of your mind. Below are a couple of great tips that you can follow for the perfect negotiation:
1. Begin With a Home Inspection
Home inspections will help buyers understand if the house is in good condition with the property and what needs repairs or updating as soon as possible. Home inspections are not usually required but are recommended by a good real estate agent when you want to use an inspection as leverage for negotiations. Use the inspection report to ask the seller to cover the cost of repairs or take the money off the asking price so you can pay for repairs, putting less strain on your budget.
2. Work With an Experienced Real Estate Agent
It can be difficult to go through the home-buying process by yourself, and if you are considering the possibility of not working with a real estate agent, you may want to rethink your plan. If you choose not to pair up with a real estate agent, you risk putting yourself at a higher risk of paying more for a property than you should. Real estate agents are there to help you determine an appropriate initial offer with tons of insider knowledge based on the housing market where you live and the overall condition of the property. It is important to look for these traits in a real estate agent:
- Experience working with buyers like yourself.
- Knowledge of the area you are considering buying in, specific neighborhoods, and comps.
- An outgoing and friendly personality.
- Availability to take buyers on as clients.
- A known ability to negotiate effectively with seller’s agents in a seller’s market.
3. Request Sellers Cover the Closing Costs
As a buyer, your focus should not only be on finding ways to get sellers to commit to lowering the asking price but also on encouraging sellers to cover a part of the closing cost if you decide to purchase their home. Closing costs range from 3 % to 6% of the loan amount and include an origination fee–the cost of setting up the mortgage loan–and the cost of getting title insurance on the deed. You can even ask the seller to pay for some of these costs when negotiating a home purchase.
4. You Can Ask for Personal Property
As a buyer, it is within your realm to negotiate for items in the home, not just certain discounts on the purchase price. You can ask for any of the following:
- Appliances
- Furniture
- Landscaping equipment or tools
- Artwork
- Decor
It is important to have a full understanding of what is included in the purchase agreement so that both the buyer and seller understand the details in full. Items that belong in the home can have a big impact on the already-established style of the house.
5. Choose a Closing Date That Works for You
The seller may try to set a closing date based on their needs, but as a buyer, you can negotiate the closing date to fit your timeline better. Sellers have the option to rent the home from you if they are not ready to move out at closing. This is called a rent-back agreement, and it will require a carefully drawn-up agreement that both the seller and buyer will sign.
How Can You Negotiate a House Price After an Inspection?
Once a home has undergone inspection, you can request that the seller reduce their asking price based on any findings. If the house will require expensive renovations before you can move in, you can always opt to negotiate to have some or all of the repair costs subtracted from the asking price.
How Can You Negotiate House Pricing Without Offense?
It is always important to remain understanding and polite when negotiating a house price. Stating your reasons for a price reduction during a negotiation clearly can be helpful. Working with a local real estate agent when deciding on an offer will make you more likely to offer a price that is competitive but not out of your wheelhouse.
Conclusion
Negotiating house prices can help you reduce the amount you borrow, lower the amount you pay, save you tons of money on repairs, and help you save on closing costs. Make sure to request a home inspection, work with a trusted real estate agent, consider asking sellers to cover a portion of your closing costs, and choose a closing date that will work in your favor. Know when to walk away from a sale if it doesn’t work out, no matter how painful it is. Trust your local real estate agents at Homeowner Experience Real Estate to guide you in finding and settling down in the home of your dreams in the many beautiful neighborhoods that make up Silicon Valley today!