Buying a home is a life-changing event. Where you live, the neighborhood, the attributes, and the amenities of the house can affect your family for years, impacting almost every element of life. Location may change your work-life balance by extending or shortening the daily commute. Your mix of friends and social activities will likely be related to where you buy a house.
Overpaying at the outset or having extensive repairs in subsequent years can also impact your future net worth if you cannot recover your investment when you sell.
In short, the home you choose impacts your quality of life.
Researching the market is the best place to start. Knowing existing market prices, your borrowing limit and creditworthiness, neighborhood characteristics, and location-related issues will help you to develop a sense of what, where, and how much you may be able to afford.
Also, meet with prospective real estate agents to determine who makes you most comfortable and confident of success. Discuss the market. Is this a buyer’s or a seller’s market based on demand, availability, and interest rates?
In recent years, the supply of available homes for sale has fallen compared to the number of active buyers. The rate of new home construction has not kept pace with rising demand. Interest rates have been at historic lows. The inevitable result? We currently have a seller’s market.
A different set of negotiation strategies may be helpful in this instance.
Losing a home purchase negotiation can take two forms:
Suppose you have searched and found a home that fits your criteria in the target price range. You decide to make an offer.
Don’t do the following:
Avoiding these issues should encourage prospective homeowners to take a more thoughtful yet firm approach to home buying. Most importantly, listen to the advice of your real estate agent.