As a homebuyer, you naturally want to secure the best possible deal. To do this, you’ll need a combination of factors, including a good price, favorable concessions, repairs paid for, and a convenient closing. Negotiation is one of the most critical steps in the process, as it can make or break a good deal. Here are four top negotiation strategies for homebuyers in Cherokee County.
Obtain Your Pre-Approval Letter
One of the first things you should do as a homebuyer in Cherokee County is to obtain pre-approval for a mortgage. Getting pre-approved is one of our top negotiation strategies because it allows you to know precisely what kind of offer you can make and will make sellers perceive you as a serious buyer.
Your lender will scrutinize your financial situation during the pre-approval process, looking carefully at your income, assets, credit, and other financial factors. The lender will then determine what kind of loan you qualify for and the amount you qualify for. With this knowledge, you can negotiate with confidence, which puts you in a stronger position.
Moreover, sellers will see you as a serious buyer, which gives you negotiating leverage. Sellers want to be assured that you have the funds or access to the funds needed to back up your offer. And if you have a pre-approval letter in hand, sellers will be more willing to negotiate because they know they are not wasting their time with you.
Understand the Local Market
Once you have a pre-approval letter, it’s time to understand the local market conditions. You need to know whether it’s a buyer’s or a seller’s market, as it will play a crucial role in how much negotiating leeway you have. You are more likely to succeed with your negotiation strategies in a buyer’s market.
Knowing the market’s prices and trends, for example, will allow you to be more realistic in your negotiations. Begin by looking at recent sales in the neighborhood you’re interested in. You can also consult an experienced local Cherokee County agent to discover more about your market.
Determine the Seller’s Motivation
Finding out exactly why the seller needs to sell or move can give you the upper hand in negotiations. Once you have this information, you can turn it to your advantage.
For example, if the seller needs to sell and relocate for a new job and also needs a quick sale to move before school starts, you will be in the driver’s seat with respect to negotiations. The seller is likely looking for a quick sale and will be willing to negotiate – and maybe even accept a lower offer to expedite the sale.
But if the seller simply wants to upgrade and move into a bigger, better home, they may not be so motivated to negotiate favorably. In this scenario, you’ll have less negotiating room and will need to rely on your agent’s expertise.
Offer Something in Return
Reciprocity, giving something to get something in return, works wonders. That’s why it can be so effective among the possible negotiation strategies.
During the negotiating process, both sides typically end up compromising. So if you’re trying to get a good deal, like a lower price, consider what you can offer to get that price. For example, if the seller needs a quick closing or flexible closing date, you could agree to that to get the price you want. Or if the seller wants certain contingencies, you might agree to them to get what you want.
Be aware that there is some risk here, as you don’t want to give away too much. Rely on your Cherokee County agent to ensure you come out ahead in such a quid pro quo arrangement.
Work with an Atlanta as One of Your Negotiation Strategies
As we’ve indicated throughout, one of the best negotiating strategies is as easy as working with an experienced Atlanta agent, especially if you’re inexperienced at negotiating. A good agent can bring to bear her knowledge (particularly knowledge of the local market), experience, and expertise to ensure you get the best deal possible. If you’re a Atlanta home buyer and want to deploy the best negotiating strategies to come out ahead, contact us today at 770-280-4560.
FAQs
Q: What are the negotiation strategies for home buyers in Cherokee County?
A: There are four main negotiation strategies for home buyers in Cherokee County: having a pre-approval letter in hand, understanding the local market, finding out why the seller needs to sell/move, and offering something in return.
Q: Why is having a pre-approval letter important?
A: Having a pre-approval letter gives you negotiating leverage by allowing you to know exactly what kind of offer you can make and will cause sellers to perceive you as a serious buyer. Sellers want to be assured that you do in fact have the funds or access to the funds needed to back up your offer, and a pre-approval letter in hand shows them that.
Q: What does it mean to understand the local market?
A: Understanding the local market means knowing whether it’s a buyer’s or a seller’s market and how much negotiating leeway you actually have. Knowing the market – prices and trends, for example – will also enable you to be more realistic in your negotiations.
Q: Why is finding out why the seller needs to sell/move important?
A: Finding out exactly why the seller needs to sell and/or move can give you the upper hand in negotiations. Once you get this information, you can turn it to your advantage. For example, if the seller needs a quick sale in order to move before school starts, you will be in the driver’s seat with respect to negotiations.
Q: What is the principle of reciprocity?
A: The principle of reciprocity is the idea that giving something to get something in return can be an effective negotiating strategy. If you’re trying to get a lower price, for example, you’ll need to consider what you can give to get that price.
Q: What is the best course of action when offering something in return?
A: It’s important not to give away too much when offering something in return. The best course of action is to rely on your Cherokee County agent to ensure you come out ahead in such a quid pro quo arrangement.
Q: How can I contact an experienced local Cherokee County agent?
A: To discover more about your market, you can contact an agent at 770-280-4560.