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Tips On Negotiating The Price For First Time Home Buyer December 7, 2010

Posted by minnesotarealty in MN Realty.
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After you’ve spent enough time working on all of the research about your future home and you’re comfortable with working with the seller, it is time to make an offer. Even so, the your buying offer is not really the end of the contract negotiation; you can still be involved with negotiating a contract price after making the offer in case the seller refuses it, hence you’ll need to have a plan to get the price you want – or simply close to it – before you stretch your original offer.

Being familiar with just about all of the terms and conditions of the sales contract and having a contingency plan are some ways to be sure you really do get the best price possible for your potential new residence. Barron’s ‘Consumer’s Guide to Home Buying’ really encourages all prospective homeowners to create a checklist of items they can practice way before the sales negotiation process starts. Below are several things to consider when you begin negotiating the price of your brand new MN real estate:

1.Who are the key decision-makers involved in the transaction? Knowing who the decision makers are would benefit the competent negotiator because this allows you to understand who really influences the buy & sell negotiation. A basic question you should know the answer to is, for example,, is the seller working independently or is he/she working with an agent? Knowing who you are negotiating with helps you establish the best approach for discussions and let you determine the level of trust you can have towards the selling party.

2. What’s your back-up plan? If your offers are not accepted by the seller, what are your other options? It can be quite infuriating to not be able to get what you wanted from any negotiations, but you also have to know when to back off and go to another direction. Identify precisely the upper price limit that you’re ready to bid for a house and don’t bid beyond that price just to win.

3. Are you aware of the particulars of the deal? It is necessary to make sure you appreciate all of the terms of the contract so you’re not confronted with any surprises later on. Review the deal and all the other details that go with it and make a note of anything that is unclear to you. Sit down with the seller or agent to review anything that you don’t think you completely understand to let go of any hesitations that you may have about signing if your offer gets accepted.

4. Are you comfortable with the seller? The sales agent can give assistance as well as professional advice regarding the home negotiation process, hence it really is important that you believe in them. You should spend sufficient time with them in order to develop a mutually respectful relationship with each other and share what you really think about the house that you are about to purchase before the negotiating process begins so that you will make an informed decision.

5. Do you think you’re ready to deal with any problems that may arise? Miscommunication with the seller’s agent, too much aggressive selling from the agent and other undesirable exchange of words which may occur during the buying and selling process makes it difficult to negotiate fairly. Keep your cool and be ready to say that you don’t want to make the deal anymore if you do not feel like it’s going down the right path.