Are you ready to invest in buying a home in Big Bear, California? Congratulations! Homeownership is a great way to build equity, save money on taxes, and create a legacy for your family. But before you become an official owner, you may need to negotiate the price of a home purchase with a seller—and that means brushing up on some basic negotiation strategies.
Besides the obvious -- work with a professional who has decades of experience in these techniques --- we’ve come up with some advice to help you hone your negotiation skills while shopping for a home in Big Bear.
Do Your Research
Before you even think about sitting down at the negotiation table, you should do your homework. Research current market conditions in the area you’re planning to buy in, such as median sale prices, average demand for available listings, and the percentage of homes being sold at asking prices. The more information you have about the local market and the home you’re buying, the better your negotiating position will be. This area is one in which an expert with experience in buying a home in Big Bear can really help.
Know the Seller’s Motives
It’s a good idea to ask the seller (or the seller’s agent) why they are selling their home. Are they relocating due to work? Looking to upsize? Downsizing? This information can be useful when crafting your counteroffer. For example, if the seller’s relocation is imminent, they may be more eager to accept a lower offer so they can move on to the next chapter of their life.
Go in With a Solid Offer
When presenting your initial offer to the seller, it pays to be realistic with your expectations. It’s recommended to start slightly lower than your top-dollar price, but make sure you don’t insult the seller with an unreasonably low opening bid. Also keep in mind the cost of any repairs the home may need. Also, be mindful of the current market behaviors. That is to say, how far off the asking prices are most recent sales? Is it 1% or 7%? Knowing this kind of information --- how the market is currently behaving in your area --- is another area where expert assistance is critical.
Be Prepared to Negotiate
Most sellers will come back with a counteroffer, which is where the negotiation process really starts. As you consider the seller’s response, remain open-minded and firm in your own position. Think carefully about which issues are non-negotiable and be prepared to walk away from the deal if it doesn’t meet your needs.
Look for Incentives
Be sure to consider other incentives that you can negotiate as part of the deal, such as asking the seller to pay for some of the closing costs or requesting a home warranty. Additionally, if the seller is keen on getting a quick sale, you may be able to take advantage of this situation and secure a better deal.
Remember, purchasing a home is a major decision. Do your research and go into the negotiation process with a clear plan to make sure you’re getting a good deal when buying the Big Bear home of your dreams. With the right strategy and some expert assistance with a bit of negotiation savvy, you’ll be writing your signature on the dotted line in no time!
