Negotiation Tips for Buying your Encino HomeFor most people, buying a home is a pretty big deal. It’s probably the largest purchase you’ve ever made (unless you bought a few years ago, short-sold that, and then bought something twice as big for half the price… but I digress). It’s hard not to be emotional when you realize that this is (hopefully) going to be your home for many years to come. Here are a few tips to ensure you get the best deal on your huge purchase:
Know the Market
You need to educate yourself. If you have no idea what other homes are going for, and whether the market is on its way up or down, you’re setting yourself up for disaster. Hopefully you’re working with a qualified and intelligent Realtor (ahem – Ben Vorspan), who’s feeding you as much information as possible.
Look at as many homes as you can, both online and in person, and read about interest rates and market trends. Check as many comps as you can, and look at the big picture – have prices been rising or falling in the neighborhood? There’s no better way to ensure that you get the best deal than to know everything about it!
Don’t Get Emotional
Aside from being educated, emotion is probably the biggest challenge you’ll face. You’re going to find the perfect property – possibly after months or years of searching – and the last thing you want to do is let it slip through your fingers. Don’t let your emotions get in the way of making a sound business decision. After all, your home isn’t a puppy… The biggest investment you’ll make!
Understand the Sellers’ Motivation
Are they getting divorces? Moving out of State? Facing foreclosure? Or are they just testing the waters? Maybe they want to sell off a few of their properties in order to diversify their portfolio. If you know why they’re selling their home, you might be able to use that to your advantage in getting the best deal. It might also help you realize early on that they aren’t the negotiatin’ types… Time to move on.
If you feel the conditions are right, and the market dictates it, negotiating doesn’t always need to be a “let’s split the difference” game of tug-of-war. Submit a reasonable offer, and stick to it. If you’re going to come off that number, don’t feel bad about offering an amount that’s less than half of the difference.
Get it in Writing
Disregard what you see on the tv shows. Deals don’t actually happen over the phone. Make sure every offer you make, and every response from the seller, is documented.If you’re ready to buy (or sell) a home in Encino, Sherman Oaks, Studio City, Tarzana, Van Nuys… anywhere in the San Fernando Valley, call me today at (310)926-2386 or contact me online.