Today, New Jersey features a booming real estate market, thanks to the improving economy but more so because of its continuing efforts to develop into a more affordable yet sophisticated city to live in, as compared to its neighbors such as New York City. New residents are flowing into the Garden State, and if you are one of them, it will do you good to have a set of shrewd negotiation skills and ample knowledge to stand your ground when you are tackling a real estate deal as a buyer. Here are some useful tips for you:
Understand the Current Market
Are you in a buyers’ market or a sellers’ market now? If you are in a buyers’ market now, there are more houses for sale for buyers to choose from and this is in your advantage. Because there is more supply than demand, you will be able to pitch a lower buying price which the seller might be forced to accept, especially if the seller is in a hurry to sell due to his or her unique situation. You have the upper hand here but do not get arrogant because by asking for the moon, you may lose a property which you are really interested in. A good strategy is to compare house prices, think of a fair price, and pitch slightly lower than that price.
Find Out the Reasons for the Home Sale
The more you understand the seller, the easier it is for you to win the battle. When you understand the reasons why the seller is willing to let go of a good piece of property, you will be able to tailor your offer better. You can also use public records to do your research (if your seller is not willing to disclose too much), for example, you can find out if the seller is in the midst of a divorce proceeding or whether the property is in foreclosure.
Do a Home Inspection but Know Its Limitations
Some property buyers think that a home inspection will give them the power to renegotiate a property deal, especially when major faults are found. Many home sellers are not willing to pour in the money to do major repairs, especially if the home inspection is done after the price has been agreed upon. If you are eyeing a piece of hot property, it’s more often than not that the inspection report is already prepared so you should be able to submit a fair offer after reviewing it.
Always be Proactive in Asking
Well, if you don’t ask, you will not get! It will never be a bad strategy to ask the seller for concessions, and if you do it in a polite way, there will be space for negotiations. Give your reasons to support your requests and if they are fair, the seller might have to accede to your requests. Therefore, asking lots of questions is always in your advantage.
Make an Offer on the Home Value, not the List Price
Do your research on the most recent sales in the neighborhood. This will give you powerful ammunition to negotiate your way through a real estate deal where the home has been priced over the market value and has been lingering in the marketplace for quite a while. It’s at times like this where the help of a local NJ property agent can be invaluable.