If you’re a home buyer, you want (naturally) to get the best deal possible. There are a lot of ingredients that go into getting a great deal, which typically means a good price, favorable concessions, repairs paid for, and a convenient closing. One of the most important of those great-deal ingredients is negotiation. That’s the critical step in the whole process whether a good deal is made or not. So check out 4 of our top negotiation strategies for home buyers in Kauai.
1. Have Your Pre-approval Letter in Hand
One of the first things home buyers in Kauai should do to gain some negotiating leverage is to get pre-approved for a mortgage. Getting pre-approved is among our top negotiation strategies because it allows you to know exactly what kind of offer you can make and will cause sellers to perceive you as a serious buyer.
During the pre-approval process, your lender will scrutinize your financial situation, taking a careful look at your income, assets, credit, and other financial factors. Having done that, the lender will determine what kind of loan you qualify for and the amount you qualify for. And when you go into negotiations knowing exactly what you have to work with, you can negotiate with confidence – which always puts you in a stronger position.
In addition, sellers will see you as a serious buyer, which also gives you negotiating leverage. Sellers want to be assured that you do in fact have the funds or access to the funds needed to back up your offer. And if you have a pre-approval letter in hand, sellers will be more willing to negotiate because they will know that they are not wasting their time with you.
2. Understand the Local Market
Once you are armed with a pre-approval letter, it’s time to move on to the next of our negotiation strategies. And that is thoroughly understanding the conditions that obtain in the local market.
First, you need to know whether it’s a buyer’s or a seller’s market because the type of market will play a huge role in how much negotiating leeway you actually have. You are, of course, far more likely to have success with your negotiation strategies in a buyer’s market.
Knowing the market – prices and trends, for example – will also enable you to be more realistic in your negotiations. A good place to begin is by looking at recent sales in the neighborhood you’re interested in. Even better is to consult an experienced local Kauai agent. To discover more about your market, you can contact an agent at 808-634-4518.
3. Find Out Why the Seller Needs to Sell/Move
One of the negotiation strategies that can really give you the upper hand involves finding out exactly why the seller needs to sell and/or move. Once you get this information, you can turn it to your advantage.
For example, if the seller needs to sell and relocate for a new job and also needs a quick sale in order to move before school starts, you will be in the driver’s seat with respect to negotiations. The seller is likely looking for a quick sale and will be willing to negotiate – and maybe even accept a lower offer to expedite the sale.
But if, on the other hand, the seller simply wants to upgrade and move into a bigger, better home, she may not be so motivated to negotiate favorably. In this scenario, you’ll have less negotiating room and will need to rely on your agent’s expertise.
4. Offer Something in Return
The principle of reciprocity – that is, giving something to get something in return – simply works. And that’s why it can be so effective among the possible negotiation strategies.
Typically, during the process of negotiating both sides wind up compromising. So if you’re trying to get a good deal, say, a lower price, you’ll need to consider what you can give to get that price.
For example, if the seller needs a quick closing or flexible closing date, you could agree to that in order to get the price you want. Or if the seller wants certain contingencies, you might agree to them so that you can get what you want.
Just be aware that there is some risk here: you don’t want to give away too much. The best course is to rely on your Kauai agent to make sure you come out ahead in such a quid pro quo arrangement.
Work with an Kauai as One of Your Negotiation Strategies
As we’ve indicated throughout, one of the best negotiating strategies is as easy as working with an experienced Kauai agent, especially if you’re inexperienced at negotiating. A good agent can bring to bear her knowledge (particularly knowledge of the local market), experience, and expertise to ensure you get the best deal possible. If you’re a Kauai home buyer and want to deploy the best negotiating strategies to come out ahead, contact us today at 808-634-4518.