Negotiating the Offer and Contract on Your New Home

by Kelly Richardson
Loan Page Columnist

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Negotiating an offer for a home is not something most people do everyday. There are many intricacies that determine how much you'll pay for a new home. Following these simple steps can help you negotiate a better price and borrow less for your mortgage.

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Tips for Negotiating an Offer on a New Home

If you're not the best negotiator in the world, don't feel alone. Negotiating an offer for a home requires some knowledge and experience. But there are some simple things you can keep in mind when negotiating that will help you in the long run. After all, the less you have to pay, the smaller your new home loan and mortgage payments will be.

Especially if you're not using an agent to buy your new home, you'll want to know about these negotiation techniques and strategies to keep the price (and your home loan) low.

Do Your Homework:

» Don't Reveal Too Much: Play your cards close to the vest and keep any unnecessary info about you or your agent to yourself.
» Don't Get Rushed: If any part of the deal sounds fishy to you, take your time and sort through the issues. Never buy on impulse.

Tips for Negotiating a Closing

Once your offer on your new home is accepted, the next negotiation task is the closing. During a closing, you are mainly negotiating who pays what fees beyond your mortgage. While it sounds small, closing costs can add up significantly. Here are the details on closing.

» Contingencies in Place: Contingencies are any unforeseeable actions that might influence the success or failure of the deal. Contingencies should be used to ensure that all parties meet their responsibilities.
» Closing Costs: In the ideal situation, closing costs should be split by both parties. However, if one party is getting the better end of the deal, then that party could be expected to pay more of closing.

The art of negotiation takes a little bit of practice and knowledge of the various factors of the deal. When in doubt, ask your real estate representative.

About the Author
Kelly Richardson covers the local education and technology scenes in major cities across the country. His articles appear in educational journals, periodicals, and e-zines.

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