Whether you are a first-time homeowner or have been around the block a few times, the negotiation process can be one of the most daunting aspects when it comes to buying a home. It is a substantial financial investment, so getting the best possible deal is essential. Working with professional real estate services in Knoxville will help you navigate those negotiation processes. Let's consider some things you can negotiate to get a better deal.
The easiest place to start is to negotiate the property's purchase price. This is so commonplace that most sellers will expect some negotiation. Sellers usually factor in up to an extra 10% when setting their asking price to accommodate lower offers. You can use many tools to lower the asking cost, such as looking at comparable properties for sale in the same neighborhood, the results of your appraisal report, and the property's general condition. Working with experienced real estate services in Knoxville is an excellent way to gather this information and negotiate the most appropriate offer. There are also a few other areas that you can negotiate to help minimize your costs and get the most from your investment.
You might not know about closing costs if you are a first-time buyer. It often catches buyers out because they haven't budgeted for this additional expense. Several factors will influence your closing costs, but as a general rule of thumb, you can expect to pay between 2% and 5% of the purchase price. In some cases, you may be able to negotiate with the seller to cover some of the closing costs. It may also be possible to ask for a closing credit which can be used for any updates and repairs that may be required. Working with wholistic real estate services in Knoxville will give you access to experienced closing agents who can help you with these negotiations. Reducing what you need to pay out in closing costs can put more money in your pocket to start any renovations you want to take care of when you move into your new home.
Buying a new home often means shopping for new furnishings, but finding the best pieces to suit the property can be challenging. When you view the property, you may find that the current owner has decorated and furnished it in a way that matches your taste. If this is the case, you could negotiate with the seller to include some of the fixtures, furnishings, and appliances in the purchase price.
Inspections & Closing Timeline
There is an old saying that says, 'time is money.' This rings true when it comes to buying a house. When a buyer can arrange inspections and close quickly, it makes their offer more attractive to the seller who may already have had the house on the market for some time. This can also give you room to negotiate the final purchase price with the help of experienced real estate services in Knoxville.
Another area that you can possibly negotiate on is the home warranty. Sellers may be willing to pay the premium during closing and hand it to the buyer, who will then take responsibility for any future deductibles. If you are unsure about this type of negotiation, ask for help from real estate services in Knoxville, and they can guide you through the process. The home warranty will likely cover repairing things like your HVAC systems, plumbing, and appliances.
During the inspection process, there may be a need for repairs highlighted that must be completed to bring this up to an acceptable standard. Depending on how extensive these repairs are, you may be able to negotiate for the repairs to be complete before closing or for a reduction in the purchase price.
Our Top 5 Tips For Negotiating House Prices
Now that you know some of the areas where you can try to negotiate savings, the next step is to prepare yourself for the negotiation process.
Here are our top tips for successful house price negotiations:
- Work With Experienced Real Estate Services in Knoxville - One of the best tips we can offer is that when you start the negotiation process while buying a house, it is always wise to have an expert in your corner. Even if you have previous experience purchasing a home, working with a realtor is wise to ensure you get the best deal possible.
- Research the Current Housing Market - The real estate market fluctuates constantly based on various factors. Whether it is currently a buyer's or seller's market can significantly impact how much negotiating a buyer can do on the purchase price of a house. When the market favors buyers, sellers are more inclined to make concessions to make the sale.
- Be Prepared to Haggle a Little - It is rare for negotiations to reach an agreement after one offer. It would be best if you were prepared for potential back and forth with the seller involving multiple counteroffers. This is where things can get complicated, so you should work with experienced real estate services in Knoxville.
- Plan for Contingencies - Unfortunately, in real estate, there is a lot of potential for unexpected circumstances that can change the whole direction of a purchase! It is important to plan for contingencies to avoid getting locked into a higher price than the property is worth. For example, you shouldn't sign a contract without getting the results of an appraisal, or you could suddenly learn of substantial repair issues that devalue the property.
- Get Pre-Approved for Your Mortgage - If you can get pre-approved for your mortgage before making an offer, it can help you negotiate as it proves you have the funding in place.
Wright Realty is a full-service real estate concierge with a wholistic approach to buying and selling property in East Tennessee. We are your trusted advisor and keep open communication throughout your entire buying/selling process. Real Estate done "Wright" means more than just a 'transaction'.
Finding Your Property the "Wright" Way!