Buying a house, especially when it comes to the negotiations, is almost always a competition and a dance to see who comes out on top. And right now, in the current market with high demand and low inventory, sellers seem to be holding most of the best cards. But there are some things buyers can do to get the upper hand and get a better deal. Read on, then, to discover 5 ways to get the upper hand when buying a house in Aurora.
1. Get Pre-approved First
One of the very first steps to take when you begin to seriously consider buying a house is to get pre-approved for a mortgage loan. Pre-approval shows the seller that you can in fact get financing and that you are a serious buyer. In fact, “[w]hen you make an offer on a home without proof of funding, you’re more likely to get passed over for the next buyer.”
Remember, though, that pre-approval and prequalification are not the same thing. With pre-approval “[y]our lender takes a look at your income, assets, and credit before issuing your pre-approval letter. This allows your lender to give you the most accurate estimate possible. When you’re prequalified, the lender usually doesn’t verify your information, which means that your prequalification number holds less weight than your pre-approval.”
2. Know Your Bottom Line . . . And Stick to It
Another way you can get the upper hand when buying a house in Aurora is simply knowing your absolute bottom line and then sticking to it. You have to know when and actually be willing to walk away if it comes to that.
“If you want to be taken seriously in a negotiation, you need the constitution to walk away from the table when a deal doesn’t suit you. Before every negotiation, establish a set number you’re willing to buy . . . at; if whoever’s at the other end of the table can’t agree to that number or a better one, walk away. It’s easy to let your emotions get the better of you when you want a particular piece of property, but it’s crucial that you stay firm in your conviction. It’s always better to walk away disappointed than agree to a bad deal that could cripple you financially.”
Of course, the other side of this coin is that you don’t want to walk away too soon and miss out. Be sure to consult a Aurora agent before taking this irrevocable step. Discover more by calling (303) 810-1202.
3. Always Get an Inspection
Industry experts also recommend that you always get an inspection when buying a house. Not only will a professional inspection let you know whether the house has any problems or issues, but if it does, you’ll have more negotiating leverage and a means to get the upper hand.
“Inspection results can be the key to negotiating a home’s final selling price. An inspector will take a walk through the home and evaluate the home for any issues like foundation cracks, problems with the heating, ventilation, and air-conditioning (HVAC) system, and more. The inspector will then give you a copy of the report. You can ask the seller for concessions if the home inspection reveals any problems that are deal breakers for you. You may want to ask the seller to fix a problem, give you a credit for closing costs, or lower the price. You can even use the inspection results to cancel the sale if your offer includes an inspection contingency or if the inspection reveals a major home issue.”
4. Look for the Hidden Factors
An effective strategy for getting the upper hand when buying a house in Aurora or anywhere else involves looking for and leveraging hidden factors. This means primarily remaining skeptical because sellers seldom lay all their cards on the table. This is especially the case with respect to a seller’s motivations, and discovering these can give you the upper hand.
“[A] seller,” for example, “could be in a financial bind, transferring to a different state for work, or moving across the country to take care of a sick relative. You should always ask open-ended questions that might reveal aspects of the seller’s position and hidden motivations. Try to chat with a seller . . . before the start of the negotiation to draw out any information that could be used to your advantage.”
Again, a Aurora agent, with her honed negotiation skills can be a great asset here. You can contact an agent at (303) 810-1202.
5. Be Courteous and Respectful
An easy and often overlooked way to gain an advantage when buying a house is simply to remain courteous and respectful. Certainly, you want to get the best deal possible, but it’s usually counterproductive to do it in an abrasive and offputting way.
A seller will be more willing to negotiate and more inclined to agree to your terms if you follow this practice. “If you remain polite and cordial during your negotiations, a . . . seller may be much more inclined to compromise and work with you.”
And Lean on Your Aurora Agent’s Expertise
One tried-and-true way to get the upper hand when buying a house is to work with an experienced local agent. For “an agent doesn’t just show you homes; they are also a crucial asset when negotiating the best price and helping you decide how much to offer.” If you’re considering buying a house and want to get the upper hand in a tough buyer’s market, contact us today at (303) 810-1202.