Negotiate Like a Pro: Strategies to Get the Best Price When Buying Your Home

Buying a house is one of the biggest investments in a person’s life. It is a complex and exciting process that requires planning, research, and knowledge. This article will equip you with the necessary tools and information to negotiate safely and achieve the house of your dreams. Here are some useful negotiation strategies for buyers:

Get Pre-Approved for a Mortgage Loan

Before even navigating the local real estate market, obtaining a pre-approval for a mortgage loan is essential. This is the starting point because it gives you an understanding of the price range you can focus on with your real estate agent. Additionally, having a pre-approval for the loan shows sellers that you are a serious buyer, which is a good strategy when the seller is eager to close the deal.

Set a Realistic Budget

Many first-time buyers may not be aware of how much it costs to buy a house. Some may think it is as simple as putting together a down payment, getting approval for a mortgage loan, and buying the house. However, setting a realistic budget can help open your eyes to the long list of other costs associated with purchasing a property, such as legal fees, closing costs, and other related expenses.

Typically, it’s best to add about seven percent to your down payment to help cover all these expenses. This way, you will have a general idea of how much you can spend.

Research Your Local Market

Are you interested in residing in your current community or expanding to other parts of the city or region? Whatever the case, it is imperative to research the local real estate market, either by doing your due diligence or working with a real estate agent. By conducting this research, you can get a rough estimate of how much you will need to live in Lisbon, Porto, Faro, or Coimbra.

Who knows? You might become slightly more knowledgeable about the market than the seller!

Request a Home Inspection

A home inspection is perhaps one of the greatest negotiation tools. By insisting on a professional home inspection in your offer, you can potentially identify issues, costly or benign, with an inspection report that can justify a lower price for the house.

Patience is Key

As our parents always told us, patience is a virtue. Indeed, being patient in the home buying process is essential. You don’t want to acquire the first house you see or accept the listed price. Ultimately, you will want to make an offer, negotiate a lower price if possible, and then work to secure the house. By being a bit more tactical, you can ensure that you made the right decision and got the best deal with terms and conditions that work for you.

Start with a Strong Offer

If you are really interested in the house, you will want to ensure that your first offer is competitive with a pre-approved loan and within your budget. This will show all parties that you are serious about buying the house and will set a positive and professional tone for potential negotiations. It is common for sellers to ask for a slightly higher amount than they actually expect to receive. Present an initial offer below the asking price but within your budget.

Flexibility on Closing Dates is Key

Flexibility will be a great negotiation tool if you want a cordial relationship with the seller. Being flexible on things like the closing date can be quite effective at the negotiating table, whether the seller needs to close quickly or wants to close in a few months.

Necessary Help

In the end, you will always want to have professional guidance during this complex and expensive home buying process. The most notable and visible person by your side will be a real estate agent. He or she can guide you through the noise and turbulence and do what is best for your wallet and your home. Simply put, a real estate agent can find a delicate balance between intense negotiation and finding the best property for your family.

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By Pedro Pettermann and Sol de Alós

Brokers at RE/MAX Cidadela since 2004

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