Hot Springs, Arkansas is a beautiful area of the Midwest—one that holds great promise for those looking to buy real estate. The best way to invest in a new home in Hot Springs—or anywhere, really—is to be armed with the right tools so you find the ideal property at an appealing price point. And that means taking on the role of a sharp negotiator.
McGraw REALTORS are experts in brokering home purchases that maximize your financial investment. We’ve put together our favorite pro tips to negotiating a successful home purchase. So you can feel confident you’re getting your Hot Springs area home at a great price.
Develop the Negotiation Mindset
Here are some key principles to keep in mind when you are negotiating a home for the best purchase price.
The seller expects you to negotiate.
While it can sometimes feel uncomfortable to ask for a lower price, remember that in home buying, negotiation is actually anticipated. Most sellers put their homes on the market at a slightly higher price than they expect to get because they know buyers will negotiate.
It never hurts to ask.
The only way to truly know if something is on the table for negotiation is to ask. Share any questions and ideas you have with your real estate agent so they can inquire about that chandelier you’d like to have, or that closing date you’d like to move. The seller might just agree.
Be prepared to walk away.
Ultimately, all good negotiators know that some deals just aren’t worth it. If you have a specific budget to meet but the seller won’t work to create a win-win with you, it may be best to look for a better deal elsewhere.
5 Things You Should Always Negotiate on a New Home
Just about anything you can imagine asking about is worth asking about. There are numerous ways to lower the amount you’ll spend on a new home purchase.
Closing costs can add up to 3-6% of your total loan value—a significant expense. While buyers normally pay these costs, you may have room to negotiate them if you’re making your offer during a buyer’s market, or if the seller is in a hurry to close.
Home Inspection and Repairs
First-time homebuyers are often surprised at the issues a good-looking home can have beneath the surface. Home inspections help catch those issues, and you have every right to negotiate on the repairs. The seller may agree to make the repairs or lower the asking price to accommodate your need to pay for the repairs.
Closing and Move-In Dates
Closing and possession dates can be tricky because buyers and sellers are usually not on the exact same schedule. You may be ready to move in, while the seller needs more time to move out—or vice versa. As a result, you can often use the time difference to negotiate a lower asking price that covers your rent or early lease termination fees.
Fixtures and Features
As you walk through the house, take notice of furnishings you’d love to have. Have your real estate agent ask the seller to include those items in the sale. Often, the homeowner will do so at no additional cost. It gets them a signed contract and frees them of the hassle of moving heavy items they don’t want to keep.
Some sellers will pay for the points on the buyer’s mortgage loan, while others may be willing to work out a way for the buyer to take over their existing loan. This can help first-time homebuyers to get a lower interest rate.
Techniques that Make Successful Negotiation More Likely
Keep the type of home you’re buying in mind.
Different home buyers have different expectations—especially when it comes to the type of home being considered. An experienced realtor can pinpoint what to negotiate based on whether the home is modest, mid-range, luxury, or a vacation home.
Offer to pay in cash.
This is a particularly popular negotiating tool for luxury home buyers and sellers. Making a strong cash offer along with a quick closing date can be appealing because it helps the seller to swiftly start saving on their expenses.
Take advantage of timing.
The time of year that you’re looking at homes can affect the asking price—often dramatically. For example, if home sales are slow around the holidays, then making an offer in December may work in your favor.
And if the seller wants to complete the sale quickly—perhaps due to an executive relocation—their need to move fast can mean they are more open to negotiating a lower asking price.
Wait a while, then make a second offer.
Making an offer and having it turned down can be disappointing, but it doesn’t always mean the property is totally off the table. Often, a home may remain on the market long after you made that first offer. If so, you might make your offer again—and this time be accepted because the seller is anxious to make a deal.
Partner with an experienced realtor.
Turning to a real estate agent to do your negotiating is a smart move. Agents know the lingo and legalese, and they understand how to broker great deals for their clients. They’re experienced in figuring out what home buyers need to know before they sign a contract. Rely on your realtor to gather information in ways that don’t cause the deal to break down.
Find Your Dream Home with the Help of Our Experts
Searching for the perfect new house in Hot Springs, Arkansas can be streamlined and stress-free. Our REALTORS know the Hot Springs area inside and out. Our broad network gives us access to fantastic properties before they are officially put on the market.
Discover the benefits of working with a realtor to find the best Hot Springs real estate at a great price.