Buying a home is an intimidating process, and it can be hard to determine whether or not you’re getting a good deal. Negotiating is a necessary skill when purchasing a home, and doing your research will help make you a successful negotiator. Make sure you have an idea of the property value, the local market and the seller’s options so that you fully understand what you’ll be bargaining against. Also, it’s important to understand the full amount that you’ll be able to afford, including the loan interest rate and other fees. Be sure to meet with a lender before preparing an offer to ensure you fully understand the costs of owning a home.
A recent article on the Equifax Finance Blog, “Buying a Home? How to Be a Confident Home Buyer,” outlines the things buyers need to understand prior to purchasing a home.
The property’s value can be determined using a competitive market analysis, which can be provided by the real estate agent. This will help you understand whether or not the buyer is asking a higher price than the home is worth which allows for additional negotiating room. Understanding the local market value will also help you understand how much negotiating room the seller has.
Finally, understand the selling condition. Has the home been on the market for a long time? Have there been previous offers on the home, or has there been a price reduction on the home?
To learn more about how to become a confident home buyer, read the full article on the Equifax Finance Blog.