This article details key house buying negotiation tactics for Denver home buyers. Be sure to read it before making an offer on a Denver home! It will clearly break down the do’s and don’ts which will help you understand how to negotiate with sellers and how to avoid common problems experience by first-time hone buyers. Purchasing a home is a major decision and it is the last place that you want to take chances.
Negotiation Tactics for Denver Home Buyers Part One: What to Do When Negotiating
The first of the house buying negotiation tactics for Denver home buyers is adequate preparation.
You absolutely must take time to prepare for negotiation. The seller wants to get as much money out of you for their home as possible, while you are trying to pay as little as possible. This is why having leverage is crucial when negotiating with sellers.
How to Gain Leverage to Prepare Yourself for a Successful Negotiation
Asking questions, researching the area and the house, and knowing the local market trends will help you gain leverage. Take, for instance, a home that has been lingering on the market for an extended period of time. There are many reasons why a home languishes on the market and many of them are negative.
- Home values in the area are falling.
- There are a lot of foreclosures or abandoned property in the area.
- New construction in the area is causing traffic congestion or noise pollution.
- The house is overpriced.
Find out why the house has been on the market so long. Other questions that help you gain leverage include:
- Why is the seller moving?
- Are there any negatives about the neighborhood?
- Is there a lot of turnover in this area? (i.e., lots of homeowners moving out)
- Does the area get flooded in bad weather? (Does the basement get flooded?)
Negotiation Tactics for Denver Home Buyers Part Two: What Not to Do
The second of the house buying negotiation tactics for Denver home buyers is to avoid giving away too much information.
The cardinal rule for buying a home is to never let the seller know just how much you want the property. That is the fastest way to lose leverage and hand it all over to the seller. Even if you are anxious to buy a house or to get out of your current one, never let on that you are desperate to buy.
Other things that put you at a disadvantage in negotiations with the seller include:
- Telling the seller or seller’s agent your maximum for the house or down payment
- Revealing too much about your own personal financial circumstances
- Making it clear how anxious you are to move
- Letting the seller rush your decision
Establish your own timeline and stick to it. If the seller is in a hurry to close the deal, you may end up paying for it later after inspection. Take your time and do not let yourself be pressured into a rushed deal.
Negotiation Tactics for Denver Home Buyers Part Three: Hiring a Real Estate Agent will Strengthen Your Hand in Negotiations and Can Save You Thousands
In fact, buyers who do not work with an agent tend to spend upwards of $10,000 more for a home than those who can call on the skillful negotiation prowess of a top real estate agent.
If you do enough research, you could find the home you want. But to get it at the price that is best for you, you need an expert. Phyllis Ursetta, owner of Integrity Realty, has nearly three decades of experience working in the Denver Real Estate Market and is prepared to help you make your real estate dreams come true! Contact Phyllis Ursetta today to help you get the best deal!
