When you are looking at buying a home there are don'ts you should be aware of. Many times the handling of the negotiation can mean the difference in huge amounts of money. This is why it is vital to have an experienced agent on your side. Here are just a few common pitfalls to avoid.
Not doing your homework
Doing your homework is important in such a large purchase. Ask your agent for a list of comparable homes recent sale prices. Look to see how long comparable listings have been on the market and what the average sale to list price ratio is. This will give you the information you need when making an offer and negotiating a final sale price.
Not understanding the seller
Try to look at the deal from the opposite side of the table. A sale is typically emotional for a seller. When making an offer try not to insult the seller, offering a fair and realistic offer to purchase will typically get you further in the negotiations. If you know the seller's motivations for selling you may also be able to offer terms that might be more attractive like a quick close or inspection.
Showing your cards
While you want to know as much about the seller as possible divulge as little about yourself in the negotiation as possible. Any knowledge the seller has about your motivation can be used as leverage in the negotiation.
Getting your heart set
Buying a home can often be an emotional process. Identify several properties you'd be happy with as well. Be careful not to get your heart in the way of your head as it can sometimes hinder the deal.
Trying to win
In a sale there needs to be two ingredients: a seller who wants to sell and a buyer who wants to buy. Try not to getting caught up in the game. Ultimately it is about buying a home and not winning a negotiation.
