Get Pre-Approved for a Mortgage

Before even navigating your local real estate market, getting pre-approved for a mortgage is key. This is the starting place because it gives you an understanding of what price range you can focus on with your real estate agent. Additionally, by having a mortgage pre-approval, you show sellers that you’re a serious buyer, which is a good strategy when the seller is eager to close the deal.

Establish a Realistic Budget

Many homebuyers might be unaware of how much it costs to purchase a home. Some may think it’s as simple as getting a down payment together, getting approved for a mortgage, and purchasing the home. However, establishing a realistic budget can help open your eyes to the long list of other costs associated with buying a property, such as legal expenses, closing costs and other related fees.

Research Your Local Market

It is imperative to research your market of choice either by doing your due diligence or working with a real estate agent, or both.  By conducting this research, you can attain a rough ballpark figure of how much you will need to in whatever market your looking be it residential or recreational or investment.

Who knows?  Maybe you’ll be slightly more knowledgeable about the market than the seller!

Request a Home Inspection

A home inspection is perhaps one of the greatest negotiating tools. By insisting on a professional home inspection in your offer, you can potentially identify issues, costly or benign, with an inspection report it will give you a level of comfort you otherwise wouldn’t have.

Patience is Key

As our parents always told us, patience is a virtue. Indeed, being patient in the home-buying process is essential. You do not want to acquire the first home you see or accept the listing price. Ultimately, you will want to submit a bid, negotiate a lower price if possible, and then work to secure the house. By being a bit more tactical, you can ensure that you have made the right decision and garnered the best deal with terms and conditions that work for you.

Start with a Strong Offer

If you are genuinely interested in the home, you will want to ensure that your first offer is competitive with a pre-approved mortgage and within your budget. This will illustrate to all parties that you are serious about purchasing the home and establish a positive and professional tone for potential negotiations.

Flexibility on Closing Dates is Key

Flexibility will be a great negotiating tool if you desire a cordial relationship with the seller. Being flexible on things like the closing date can be pretty effective at the bargaining table, whether the seller needs to close quickly or wants to close a couple of months down the road.

Be Personable

Industry professionals have said in the past that you should be personable to the seller. This means that you should introduce yourself by writing an email or (gasp!) a letter and talking about your family. This will create a more empathetic situation between you and the homeowner. In other words, you will present yourself as more than a strange person who bid on the home.

In the end, you will always want to have professional guidance during this complex and expensive home-buying process. Your local Realtor can navigate you through the noise and turbulence and do what is best for your pocketbook and your household. Put simply, a real estate agent can strike a delicate balance between intense negotiation and finding the best property for you.