Honolulu Mortgage Stars

Buying your own home will not only challenge you financially–it would also have you bring out your negotiation skills. Because every seller has his or her own strategy in selling a property, you will be faced with many deals and offers. You need to be able to respond to every bid and pitch that will come your way, so here are some that will help you in negotiating on a price and save hundreds or thousands of dollars.

Understanding your seller’s needs.

The goal here is to reach a negotiation where the needs of both you and the seller are met, and to agree on a lowest possible price for the house. You need to find a seller who honest and motivated–you can validate this by asking them about what they like and don’t like about the property. Listen carefully to what they have to say, but don’t agree or disagree just yet. At this point, you just want to get as much information as possible. Let the seller speak, and evaluate all the info they give–arguing or giving negative comments will do you no good.

Making a good initial offer.

When making the offer, don’t give an amount that both you and the seller you will deem absurd. Simply put, do not insult your seller by giving a ridiculous price on the property. Unless the market is strong and doing really well, a good buyer will give an offer of less than the listed price. You could also start off buy offering at least 10% below the price you’re willing to pay, and you can do your negotiation from here.

Getting free home repairs / renovations.

Ask the seller if the house has been inspected prior to listing. This way, you will be able to find out about the parts of the house that needs repair. There are sellers who would already fulfill all the necessary local inspection or give you a list of the weak parts of the house that require renovation, and there are also those who would not disclose anything. In case you’re faced with the latter, the best thing to do is to hire an inspector of your own. If you later find out that a lot of defects have not been exposed and communicated properly, you could turn this into your advantage by making new terms and negotiations that will allow you to save up on repair.

Getting appliance and furniture add-ons.

Aside from including the renovation costs in the offer, you could also ask the seller if they could include some household items. There’s nothing wrong with asking, so if you think that you could use the what’s left of the property’s furniture and appliances–the oven, dining table, couch, chandelier, and what have you–go ahead and ask. A good seller could throw in a lot of stuff for free–all you need to do is tell them.

Remember that both you and the seller wants to feel good about the transaction. At the end of the deal, you’ll find yourself having some compromises (as would the seller)–the key is to be satisfied in general. With careful planning and balanced agreement, you will be able to inch closer to your dream home.