Buying a home is always in most people's wish list, but over eagerness and lack of proper knowledge can lead to the buyer making irrevocable mistakes. If you have actually come across a home that you like so much then you might even be ready to negotiate, maybe squeeze a few more dollars to buy it. That is alright, it is your choice anyway, but when it comes to negotiations with the seller and his agent, do you know how to go about it? Do you know how to turn the tables in such a way that things will fall in line with you are thinking? Often negotiations start in a good way, but things may turn sour later on.
If you feel the negotiations are not going your way, then the following could be one of the reasons:
Not doing your homework while coming to negotiate
This is one of the biggest mistakes made by home buyers. They come into negotiation without doing their homework first. You must have an idea of the local market and gauge its pulse. Go through the local listings to learn more about other homes that have been put up for sale. All the information is available online, you just need to get them and put them together. You can even speak with the neighbors to know more about the community.
Offering to compromise
Your love for the home may force you to compromise on the seller's terms. If the seller has not agreed to lower the price, and if you feel the house is a bit pricey, then don't try to compromise unless the house is worth the effort.
Low ball offers
If you want to sabotage your home purchase dream then you can make a low ball offer to the seller. If you do that then the seller will think you are not serious about the offer and he will not even consider you a worthy buyer. In order to avoid making a low ball offer, you should have supportable facts when you base the price amount. Of course, your idea may be to purchase a good home at the lowest price possible for you, but it could backfire.
Excessive eagerness is harmful
You lose your bargaining power if you show you are desperate publicly. The seller and his agent can easily use this against you. Even if the home looks perfect in every way you have thought of, do not display your feelings. Always play everything by the ear, because desperate buyers unfortunately, pay more than they ought to.
Confidential information is meant to be kept confidential
Do not talk unnecessarily in front of the seller. Some people are so good at smooth talking that you may like to open up to them and tell them your innermost secrets. Never share information like how much you are planning to get as mortgage, how much money you have as down payment, why you are expecting a fast move and so on. Avoid sharing any information that could be used against you.
Make the negotiations person-to-person
There are people who do not have the time to come and meet with the seller and they prefer to fax or email the negotiation process. Is it easy to negotiate with a person unless you see him face to face? It would be better to negotiate when you do it face-to-face because you can collect a lot of information by watching gestures and facial expressions.
You negotiate so much that you forget the real purpose
That would be a tragedy! Some people get so caught up in the negotiation game that they forget they have a house to buy. The concentration would be on gaining a victory over the seller. Somebody has to give in somewhere; do not make it an ego thing.