Buying a new home is, for most people, the single largest investment they will ever make. Many couples save for years so they can put down enough to own their piece of the American dream. Of course, with big decisions come anxiety and nerves and most people will admit that negotiating the price for a new home is a little more than intimidating.
You don’t need to be a lawyer or stock trader to know how to negotiate and get a price that is fair and within your budget. In most cases it’s simply a matter of being educated and firm in your demands that will get you the price you want. At By Carrier we know how important buying a new home is so we offer a few tips that can help get you started.
Know the Market
Before you get into any negotiating, you need to know the market. Simply jumping into a bidding war and throwing out an offer can end up being a huge mistake. As a homeowner you may be consulting with realtors and mortgage lenders, but is very important that you do your own research so you don’t get stuck paying more that you should. No one is saying you need to be an expert in home prices and negotiating, but you do need to know the average home price in your neighborhood and what constitutes a fair offer.
As with any major purchase, never jump at the first offer. Even if it’s an attractive one you never know if there is a better one on the horizon. Get quotes from different mortgage lenders and compare offers with what other people in the same neighborhood paid. Your home may be different but in general, homes within the same community are often in the same price range without too much deviation.
Don’t be afraid to stand your ground. Many new homeowners feel intimidated when dealing with banks, mortgage lenders and realtors simply because they lack experience. While a bank or mortgage lender may have more experience calculating home prices, you know your budget and what you want so be firm. Don’t hesitate to pass on an offer and don’t feel pressured to buy. If the numbers don’t add up and you don’t feel comfortable, take a pass. Trust us, there are plenty of mortgage lenders out there who will offer a lower price so you just need to be patient and wait for the one that is best suited for your budget and your needs.