You’re looking to build your dream house – and you have just identified some homes for sale that are a perfect fit for you – except they’re slightly out of budget. While price negotiations are usually part of real estate deals, not every homebuyer out there knows how to negotiate properly, or approach this part of the house sale process the right way, thus missing out on a chance to get the best deal out of their respective dream homes.
That’s why we came up with this list of valuable negotiation tips:
- You can’t leverage the home inspectors’ report if you don’t choose your home inspector carefully. Buyers often assume that they can use the home inspection report to negotiate a better deal – but that’s only true if these reports are done by professional, qualified, credible, and trustworthy home inspectors. So choose them carefully. Untrained inspectors will make it harder for the seller to trust whatever findings they come up with. When deciding on a home inspection company, remember to verify things like trainings, certifications, local licenses, and even education programs. In Chicago Metropolitan Area, as well as in Chicago-Joliet-Naperville Metropolitan Statistical Area, HouseMaster stands as one of the largest (and most experienced) organizations for professional home inspections.
- Be present at the actual inspection. Attending the home inspection will certainly make for a more well-informed homebuyer, but that’s only one of the many reasons why it’s helpful to be present at the inspection. Apart from a basic walk-through, home inspectors will also usually provide easy-to-understand demonstrations of how the house operates, where the important shut-off valves are, and where defects and damages have been seen. Attend the second home inspection, too, if you can: this is when you can verify whether the repairs that the inspector recommended in the first report have actually been made – or at least noted for negotiation purposes.
- Know what’s important. The home inspection report will contain lots of details, big and small, but make sure you focus your efforts on what is actually important. Look at major elements. Sidewalk cracks and wallpaper peeling aren’t pleasing to the eyes, but there might be other defects in the house that will cost more than 500 bucks to repair. Pay attention to that, because they’re the elements that are likely to be negotiable.
- Avoid souring a deal. It’s important to be realistic and professional about price negotiations – don’t exploit too ruthlessly. Instead of negotiating $2 for every $1 of actual repair expense, provide and present cost estimates. This will make your requests much more substantial, and your negotiations much more friendly.
- Ask about warranties. It never hurts to consider a home warranty, especially if the seller has some major systems in the house that are a bit out of date. Start with a period of one year. Who knows? The seller might even consider paying for coverage, as this reduces the risk of swallowing heavy replacement costs.
The key to price negotiations is educating yourself about the condition of the house you’re buying. Home inspections will certainly help you prepare. The above tips, meanwhile, will help you engage with the seller in more realistic negotiations.
For more information on home inspections, home buying, and home maintenance, visit HouseMaster.com.