Tips For Negotiation For First Time Home Buyers

It is usually confusing for home buyers, especially the first-timers to understand the intricate details and formalities while dealing with real estate agents and homeowners. Careful analysis shows that there are numerous clauses in the agreement that can act in favor of the buyers saving them money and time.

The customers often presume that the realtors do strive to bring down the costs, which is a wrong decision according to professor Zoe Chance of Yale University. The ultimate goal of the real estate agents is to strike the deal irrespective of whether the clients get what they want. Analysts urge the buyers to capitalize on any opportunity that comes up regarding bargain including factors like flexible date of possession, closing costs, etc.

In-depth understanding of Agreements and formalities

Every segment of a clause or a form should be understood by home buyers before making any commitment to a specific property. Many feel shy asking for elaborate explanations from the realtors.

It is to be clearly understood that the realtor is bound to explain every term on forms as it is a part of the job profile. The realtors are rigorously trained before they go out in the field, so it should take a minute for them to help out regarding any misunderstanding or complicated terminology. Though highly talented with good negotiation skills, an agent should be inquired about legal opinions of any sort as they are not lawyers.

Tackling hassles related to closing costs

Usually, the first time home buyers are unaware of closing costs and often end up paying more to acquire the property. Closing cost varies between 2% – 5% of the total transaction depending on the value and the location of the property. This is an area of negotiation as the costs can be paid by either of the parties.

For example, if the seller is restless and wants to leave the property early, the buyer can convince the seller to pay a good chunk of the closing cost. Successful negotiation saves a good amount of money for the buyer which can be invested in revamping the interiors and carry out repairs.

The Importance of Home Warranty and repairs

Experienced realtors insist that the home buyers get at least a year of home warranty for avoiding excessive expenditure.

A homeowner is covered for repairs that include the HVAC, plumbing and other key components by the home warranty thus saving a considerable amount of money for any upgrades suggested by home inspectors.

Currently, there are two types of inspection which are as follows:
● Standard inspection is carried out to detect both major and low-risk problems.
● Specific Inspection is carried out to target different areas like washrooms, terrace, etc.

A seller has the right to decline specific inspections, though inconvenient for buyers, but gives them the option to ignore the minor problems. The home buyers should be ready to negotiate for things that can compromise the safety of the residents.

Things to do regarding furniture and household appliances

Real estate agents are serious when they talk about negotiations related to furnishings for example lights, washroom interiors, electronic appliances, and even pool maintenance gear.

It is common for sellers to accept such requests as they don’t transport objects they rarely use.

Negotiation on the listed price of properties

This is a basic but the most important negotiation and the experts believe that the home buyers can bring down prices by bringing up certain factors such as condition of the neighborhood, nearby recreational and commercial complexes, similar properties, etc.