Buying a House Property Valuation: negotiating
Actually there are a few critical checklist steps before the financing and negotiations begin. Check to see if you have performed a basic property search without relying on something someone told you. After all said and done in this age of technology is it is up to you find out all the property information you can. And you can find out a lot with a little research!
Talking to the seller before buying a house
The first thing that will give your buyer an educated advantage is familiarity with the marketplace, particularly in their area of interest. Then, with that broader knowledge, they can zero in on the property at hand. A new home buyer should ask many questions, such as: why the seller has listed the home, how long a home has been listed, how soon they need to sell, and if there are any defects in the home. After talking directly to the seller or the seller’s agent, the next step is a dedicated property search.
Getting the property information online data search
Buying a house requires a strategy where you are not wasting months of time and hearing all about the property from the agent only. If you find a major issue at the last moment you may have missed out on a better real estate purchase. If you are buying a house for the first time there is also the tendency to buy “guided by emotion”. Don’t be swayed into this train of thought where the sunny kitchen becomes the focal point and disregarding the falling roof repairs! You can get much of the property search data by putting the address into a google search. You will probably find a Trulia listing for the home and other public data. You can look at the comparables, local schools statistics, and crime in the area along with foreclosed properties in the vicinity of the house.
In getting the property history data with a real estate information search you should print this out and start defining the pros and cons of the house. If you like the location because of the local amenities that is not as important criteria (if you have children) as a good school district. However if the location is close to your work and you can avoid a long commute this is a select area.
Don't forget, as the new home buyer your client is in the driver's seat, so obtain all the information you can. However, be careful that your client doesn't reveal too much about their personal details, such as income, their down payment, the most they will pay for a house, and how soon they want to move to their new home. As in all transactions, time is of the essence so if the seller is under some sort of time pressure, try to use this to your client's advantage. However, usually the buyer and/or seller have deadlines, so be sure your clients are not too rushed into buying a home.
Now that your client has found a home they truly want, they must leave emotion aside, adopting the "take it or leave it" tact. How to buy a house is all about the ability to not " fall in love" with the place! for once the seller finds out your client must have their home, your client loses the negotiation edge. However, your client should never take unfair advantage of the seller, particularly if the seller is facing a difficult situation. It is best if your client can offer a fair price that the seller can truly accept without further hardship. When your client finally closes the deal, it is good form for the buyer to congratulate the seller on their successful negotiations too.
Negotiating the deal: Property Valuation Information is your leverage!
Property valuation is the critical info you need to set an offer that is not ridiculously low but not too high either! In getting a property valuation report many times you will be looking at the “sold house prices” as in comparables for the pricing data. The sold house price uses the recent sales transactions in a given search area and a big data stream spits out the basic pricing model. Is this really the true estimated cost of the home? No it is a very basic appraisal tool that can zero into the nearest $5M of a property valuation price?
We looked at a Zillow property valuation model of "how much is my house worth"… We applied a Bel Air California search and found seven homes within a few acres radius that ranged from $5-$10 million dollars. The point is, you will need to dig deeper than the online property valuation tools to get a good idea what the house is really worth.
Mental toughness and preparation in combination with a strong negotiating strategy will play a very important role in how to buy a house purchasing process. A first time buyer can certainly benefit from learning a few negotiation tips before making an offer on a home, making the buyer-agent a winning team a winning one!
When you are armed with the local comparables and entire printout of every detail of the property research then you can walk into any negotiation with confidence. Information is the ultimate power especially in a purchase where you know exactly where the valuation stands. If a seller is going off on how great the location is you can point out the repair defects, disclosure data and local information even he does not know about. You may be able to show him/her recent property values, increased crime in the area or other pertinent info.
If any point can be made it is again, property research data, history, local statistics and valuation information is everything in buying a house, including the negotiating phase.