If you are a first time home buyer, it would be important for you to consider all of the factors which are commonly associated with the home buying process. You will have to consider how the real estate market is doing. You will be required to consider your credit rating and what the eligibility criteria is for buying a home. In addition, you would also be required to make sure that you’ve got the required papers for obtaining a home loan. It is almost impossible to buy a home without a home loan.
Understanding the Process
A good command over the whole process will help you gain the right mortgage and thus buy the right home, as per your needs and affordability. If you cannot buy the right home and if you fail to obtain the right mortgage, it is going to be hard for you to maintain payments on the same. Your knowledge will help you in the negotiation process, and thereby in clinching the best deal.
So, what you will be required to do is:
- Understand the market – You need to have a proper understanding of the market, if you are going to negotiate for the first time about the home price. The more knowledge you have, the easier will it be for you to negotiate. If the other party you will be negotiating with has enough knowledge, it is going to be hard for you to accomplish a smooth negotiation.
- Get help of an agent – It is better to get help and advice of a real estate agent. However, while dealing with an agent, it would be important for you to find out if the agent works for the buyers or the sellers. Sellers agent wouldn’t be of much help for you. An agent however, has greater knowledge about the market and the deals.
- Be sure about your affordability – You need to be aware of the level of your affordability, before you can go on to start a negotiation with the seller. It is not at all wise to go for a deal which you cannot afford.
- Be sure about the needs – You will have to be aware about your needs – as to what kind of home you require. If you are sure about your requirements, it is going to be easier for you to deal with the seller. You will easily be able to point out as to way you want the home at a lesser price. If you cannot get the required things within the home and its surroundings, why would you even pay so much for the same.
- Evaluate offers – If you are checking out different offers at the same time, it is going to be hard for you to decide as to which is the better offer. While negotiating out down some of the details in a page. Then, analyze the different offers and make the final deal, on the home price.
- Have a clear idea on proceeds – You need to have a clear idea on the proceeds from a sale. So, make sure that you are aware of the process. This is going to help you a lot in clinching the best deal.
- Check with the condition of the home – You need to check with the condition that the home is in. This is important because, if you need to do too many repairs, the asking price for the home should be less enough.
So, the above are the most important things you will have to keep in mind, if you want to negotiate right for settling a good price.
This guest post is by Sam Stokdale