Negotiation Tips for Buying a Home

If you’re in the process of buying a home, you know how important the price is. The cost of a property is one of the main influences on whether or not you are able to buy it. Luckily, the listed price is far from the final price. In fact, you can lower the price considerably, by using a few negotiation tips.

Take your time

In almost every case, the party that has more time gets a better deal. Try not to be in a rush to close on the property. Make sure you don’t have any deadlines. If you do, the seller will use it against you. If you find out that the seller has their own deadline, don’t be afraid to take your time. As they become more eager to sell the property, the price will come down.

Always ask for something in return

Don’t make any concessions without asking for something in return. It doesn’t make sense to let a chance to gain more from the deal pass you by, and giving an opponent something for nothing can create a sense that they deserve free things from you. This definitely isn’t a position you want to be in.

Listen

Many people negotiate by talking about what they want as much as possible. In reality, this is the opposite of what you should do. Give the seller plenty of time to tell you what they want. Whenever you listen, you gain knowledge, and knowledge is the best tool you can have when it comes to negotiation.

Looking for more information about negotiation or buying a home? Contact us.

Home Selling Tips: Finance Your Own Property

We recently talked about how buyers can benefit from using seller-based financing. The truth is, it’s often a very smart move for sellers as well. Here are a few reasons that you should seller finance your property.

More money

Arguably, the best part of seller financing for the seller is the extra money. If you choose to send the buyer to a bank for a mortgage, you’ll get the price of the property right away. On the other hand, if you allow them to finance through you, the price will be paid to you over the course of the loan, but it will come with interest, which is often worth almost as much as the loan itself. This means that, even if your property is only worth $60,000, you may be able to get $100,000 out of if, if you’re willing to wait for it.

Flexibility

Seller financing makes the entire process more flexible for both the buyer and the seller. If you finance your own property, you can ask for just about whatever you want. This gives you a lot of extra power in negotiations. You control all aspects of the loan, and can use that to your advantage.

Options

Once you’ve agreed to finance the property yourself, you still have other options available to you. Even years later, you could still sell the loan to an investor. For example, if you were to decide a year after the sale that you needed the cash, you’d probably still be able to sell the note for more than the house was worth.

Looking for more information about seller financing or anything else related to real estate? Contact us.

Home Buying Tips: Why You Should Consider Seller Financing

If you’re buying a home in the near future, you’re probably trying to figure out how to finance it. You could take out a loan with a bank of course, but that tends to be expensive and not very flexible. You could try to pay in cash, but that only works if you have the money, which isn’t very likely. There is an alternative that you may not have thought of. It’s actually possible to finance your new property directly through the person selling it. Here are some benefits of seller financing for your next property.

Flexibility

This is by far the biggest benefit of seller financing for the buyer. Banks are very rigid in their expectations, but when you finance through the seller, the opposite is true. For example, maybe you don’t have enough for a down payment. You may be able to convince the seller to accept something of value, such as a car, instead. If you’re in a strong negotiating position, you may even be able to avoid the down payment all together. Perhaps in the middle of the loan, you find that you can’t afford a payment. A bank would send you angry letters, charge you fees, and eventually foreclose. A seller, however, could simply allow you to skip a payment, perhaps in exchange for a little extra the next month.

Negotiation

Seller financing can also help negotiation because it adds several new elements. More things that can be negotiated means more chances for both sides to be happy.

Interested in learning more about how seller financing might be the right choice for you? Contact us. We can help you with that, or anything else that you need.

Listing information is deemed reliable, but not guaranteed. This IDX solution is (c) Diverse Solutions 2013.
Each Keller Williams Realty office is independently owned and operated