When it’s time to buy a home, we all want to get the best price possible. It would be foolish to do otherwise, wouldn’t it? The negotiations stage is that critical part of the home-buying process where you can get a great deal – or lose a bunch of money. But armed with some proven techniques and strategies, you are far likelier to come out the winner. So take a look at these tips for getting the best price on a Northwest Arkansas home.
Don’t Be First
One of the most effective strategies for getting the best price on a Northwest Arkansas home involves not being the first buyer to approach the seller. Sellers grow tired of having to endure viewers traipsing through their home month after month with no sale. The goal is to approach them after they get worn down – when they are usually more willing to make concessions during negotiations.
Also, houses that have been languishing on the market for some time begin to lose buyer appeal. So if you approach a seller after a house has been on the market for at least 30 days, you will have much more bargaining/negotiating leverage. And in today’s market, these properties are typically overpriced and will need to reduce their price to sell anyway. Get to them before they voluntarily drop the price and the flood of other buyers shows up.
Go in Armed with Knowledge
When it comes to negotiations for getting the best price on a Northwest Arkansas home, knowledge really is power. If you enter into negotiations with more knowledge and information than the seller – things such as knowledge of the home’s true value, current market conditions, and the complex closing process – you will have the advantage.
Here’s an example. Much of the time, buyers aren’t aware that they can ask their agent to evaluate the comparable sales in the area before a contract for sale is drawn up. Doing so will allow you to know a more accurate value of the house – that is, you won’t be working from just the seller’s asking price and their agent’s valuation.
Be Boldly Aggressive
You certainly don’t want to be a pushy jerk, but you definitely don’t want to be a pushover either. Being at least a little boldly aggressive will stand you in good stead during negotiations, especially when it comes to your initial bid.
For example, when you make a bid, you could offer, say, 5% less than you’re actually willing to pay. That way, the starting point in your negotiations will have as its focus your bid amount and not the higher asking price. And if you have been pre-approved and are capable of making a hefty down payment, then you can really apply the pressure because you are in the position of greater financial leverage.
Of course this depends on the market conditions, because in very low inventory situations, multiple buyers may be competing with you. This is where a good buyer’s agent can help you understand what types of offers will be competitive and which ones won’t.
Checkout my other Blog Post on How To Win a Bidding War.
Be Empathetic
Finally, in getting the best price on a Northwest Arkansas home, it can be helpful to display some empathy. This may seem to contravene the tip just above, but it doesn’t really. You can be firm while still coming across as likable and able to relate to the seller’s concerns and issues.
The fact is we all like people who are like us. So, during negotiations, try putting yourself in the seller’s shoes and seeing things from their perspective. The goal is to establish a connection, an empathetic human relationship. Doing this will incline the seller to like you and make them likelier to give you a better price and/or grant concessions.
Your agent should be able to help craft negotiation strategies to help the sellers better understand where you’re coming from, while still protecting you interests and not giving away too much confidential information.