If you are ready to buy a home in California, it is time to learn about negotiating a home purchase. You have probably negotiated many deals throughout your life, such as a car purchase, job benefits, and more. A home purchase requires the same steps you would use in any negotiation.
According to Home Buyer’s Information Center these steps are get information, prepare, and be realistic. Each step prepares you to make an educated and acceptable offer to the seller.
Getting information is probably the most important step. Your real estate agent will assist in providing you with detailed information about the home. If not offered, request a detailed CMA (Comparable Market Analysis). Your agent should be able to customize a report showing all comparable homes in the area. It will show homes that were sold recently, active and pending listings. It will also give details about the listings, such as how long it was or has been on the market, the size of the home, and the number of bedrooms and bathrooms, so you may compare homes with similar condition, schools, and other criteria. Make sure you are comparing apple to apple. This gives you the information needed to see if the house you are looking at is in line with recent sales.
Review the homes on the list that have recently sold. Drive by them and check out the exterior of the property to see if they compare. The condition of the home will have an affect on the price. Realizing the extra amenities of the homes compared with the home you are interested in can also help in negotiations.
How motivated are the sellers? The seller’s agent cannot give you detailed information about the sellers, but your agent can look at the listing and review if the price has been decreased multiple times, if the home has been listed before, if the home is vacant, and any other pertinent information regarding the seller’s motivation.
Prepare yourself for this home purchase. Make sure that your finances are in order prior to the start of negotiations. If you absolutely love the home, make sure that your emotions do not get the better of you and you make spur of the moment decisions. Sit down with your agent and discuss your maximum spending amount and detail what amenities that you want included. This helps the agent lead your negotiations and get you what you want.
While you are doing your research and preparing yourself, make sure you remain realistic. Be prepared to walk away if the deal doesn’t work out the way that you want. Pay attention to the comparable homes from the CMA, and determine if the price is fair. If the price is fair, do not low-ball them because it might kill the deal before it even gets to negotiations. Choose an agent who is strong in negotiation and presentation skill. Listen to your agent, and allow them to use their expertise to guide you.
Once your offer has been accepted, negotiation doesn’t stop there. Complete your due diligence and if the repair needed is more than you had anticipated, your agent will help you negotiate with the sellers by requesting repairs or credits. There are many facets to a good negotiation; ultimately, a good negotiation skill means how to bring a win-win situation to all parties. Focus on the ultimate goal, which is to sell or buy a property with minimal risk. Trying to squeeze everything out of the other party may hurt you at a later date.
Good luck in your negotiations and when you are ready to buy or sell your home, we at Haylen Group are here to help you with all of your real estate needs! If you are unsure what your options are, call Helen Chong at (408) 800-LIST or email at Helen@HaylenGroup.com. You can also visit us at our website for available listings and additional information.