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Rates are flat today. Today’s comparison mortgage rates with no lender fees are 4.00 % on a 30 year, 3.375% on a 15 year and 3.125% on a 10 year. (click here for details)
So today I am going to flip the script and talk about the art of negotiating the purchase price of your new home. Because let’s be honest. If you want the best deal on your mortgage, it is going to start with that purchase price.
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Now, in the sometimes complicated process of buying a home, negotiations can get a bit sticky. So when you and your Realtor are involved in the unique art of price negotiations, make sure you know what you are getting into.
The U.S. News & World Report did a really good article on negotiation tactics. They interviewed several expert negotiators, and here’s what they had to say when it comes to the biggest mistakes homebuyers make in the process:
1. Understand the seller’s point of view. Ed Brodow, author of Negotiation Boot Camp, said homebuyers often overlook seeing things from the opposite point of view. He advised leveraging the seller’s fears and asking yourself what the pressures are on the house seller. Maybe the seller is under enormous pressure to sell the house quickly because of a new job in a new city. Maybe the seller is facing financial hardship. Who knows? Just try to find out as much as you can to boost your negotiating position.
2. Do your homework! That’s right, you heard me, settle down and do your homework. Important information might be right in front of you. For example, you can get the sale prices of comparable homes and find out how long certain listings have been on the market. The best place to find out that information is with an experienced Realtor in your area.
3. Remain incognito. Your goal maybe to find out as much about the seller as there is to know. But at the same time, you need to keep yourself a mystery. Just as you’re digging for info on the seller, the seller could be doing the same thing. It’s a two-way street. Don’t let them know how bad you want it.
4. Keep your options open. Don’t put all your eggs in one basket. Make sure you have a back-up plan in place just in case. Even if you’re certain you’ve found that perfect home, have another one in mind – this way you’re not desperate to buy the first home that caught your eye. If that happens, you may find yourself on the other end of the table trying to give the seller whatever he or she wants.
So these are just a few tips to help you when diving into negotiations for a new home. If the seller doesn’t reduce the price as much as you wanted, it’s not the end of the world. If you really like the home and the price has been reduced enough to fit your budget, then consider it a win-win.
Just make sure your decision to purchase your next dream home is a logical one and not an emotional one. Emotion can cloud your judgment, and make you do something you wouldn’t normally do.
Let’s change the way people shop for a mortgage…forever!
PS. To ask a question, get advice, or find out if you’re getting the best deal possible on your loan, just post a comment below. Daily comparison rates, calculators, and other cool features are available in the free Rates in Motion LoanApp by going to your smart phone and clicking on this link, activation code is 9203780002