Looking for tips for negotiations when buying real estate in Salt Lake? Buying a home is nothing like buying a loaf of bread or a new stereo. Negotiations are an expected and necessary part of the process because most sellers list their homes at a higher price than they actually expect to get. Although negotiations are expected, knowing how to negotiate well can get you an even better deal. So let’s look at some tips for negotiations and objections for homebuyers in Salt Lake.
Determine What You Consider a “Win”
The first of our tips for negotiations for Salt Lake home buyers involves determining exactly what you’ll consider a “win.” You simply must go into the negotiations knowing what you want to accomplish – otherwise, you’ll be at a disadvantage in this competition.
Before ever making an offer, determine your priorities. Is getting the lowest price number one in your book? Or are certain concessions more important? Or is closing by a certain date at the top of your list of priorities? Whatever it is, know what it is before you begin negotiating.
If, for example, a short closing timeline is your top priority, you’ll likely have to compromise in other areas. You may not, in this case, be able to swing a price reduction for roof repairs. But it won’t matter because it will still be a win for you.
Still, you don’t want to give up too much in order to get what you need and want. This is where an experienced local agent can be an invaluable asset – to help you ensure your win is really that. To find out more about this, call (801) 755-3865.
Understand the Local Market
And any list of tips for negotiations and objections for homebuyers in Salt Lake should include an exhortation to understand the local market conditions. This applies particularly to the amount of buyer interest in a home.
“The amount of room you have to negotiate is inversely proportional to the amount of interest in the home. If many buyers have expressed interest in the home and there are more offers, you’ll have less room to negotiate. If your local real estate market is cold, you have more room to ask for concessions, a lower price and repairs.”
Again, your local agent can be a huge asset here. She can get a feel for buyer interest and, as a result, will know exactly how to successfully conduct negotiations.
Leverage the Inspection
Another of the important tips for negotiations for Salt Lake home buyers is to be sure to get an inspection and then leverage the inspection results. You’ll get a copy of the inspection report, and you can use it to get abetter deal.
“You can,” according to industry pros, “ask the seller for concessions if the home inspection reveals any problems that are deal breakers for you. You may want to ask the seller to fix a problem, give you a credit for closing costs, or lower the price. You can even use the inspection results to cancel the sale if your offer includes an inspection contingency or if the inspection reveals a major home issue.”
The inspection results can be a key element in negotiating the final selling price. If you’re unsure about this, be sure to consult your agent to get the most leverage.
Communicate Through Your Agent
Of all the tips for negotiations, this one may be the most important. Always communicate with the seller and the seller’s agent through your agent.
And here’s why this is such a paramount one of the tips for negotiations for Salt Lake home buyers: “[T]here’s a lot of real estate jargon to master. Remember that many of these terms have legally sensitive definitions and are often conflated with one another. For example, many buyers don’t fully understand the difference between an appraisal and an inspection. You may not get the answer you need in time if you contact a seller asking about appraisal results when you really intended to reference inspection results. Your real estate agent knows how to phrase questions and requests in a way that doesn’t put your interests in jeopardy.”
Don’t Forget Closing Costs
Closing is another part of the transaction where you can score a big negotiations win. Closing costs are the next biggest upfront expense after the down payment.
A good negotiating strategy, then, is to get the seller to pay some or all of the closing costs. And here’s why we include this among our tips for negotiations:“Closing costs on a home purchase are usually between 3% – 6% of your total loan value. For example, closing on a $150,000 loan means you can expect to pay between $4,500 – $9,000 in closing costs. This means that these fees can potentially present a significant barrier between you and your home purchase.”
Get the Agent Edge
These are indeed important tips for negotiations, but they are only a few of the things you can do to get a better deal. Another one is to use a qualified local real estate agent who is an expert in the local market. Your agent will be your advocate and can bring to bear her extensive negotiating expertise and experience. To make the most of these tips for negotiations for Salt Lake.