If you think that you should buy a home when the market conditions are favorable, then you are not always right. You can also make a good financial move even if deciding to buy a home in the down market, only what you need is right negotiation tips and proper knowledge about the market condition. Here are some essential tips following which you can buy a suitable property at a favorable rate at any time.
- Understand the market well - By this, the experts mean that you need to have a clear idea regarding the price range at which similar properties have been sold in that particular area during the recent times. You need to know both the asking price as well as the selling price of the properties. Knowledge of this will help you to prepare the ground for negotiation. To do so, you can take help from a knowledgeable buyer's agent and ask from him/her a comparable market analysis. And, you can get the listing prices of the properties by browsing through the internet.
- Acquire the proper skills of negotiation - As already mentioned, negotiation is perhaps the key factor is getting a suitable property at a favorable price. The initial offer of yours, as a buyer, should be an opportunity to know the reason why the seller wants to sell the property. Try to find out whether he/she is moving out of the city due to a job change or trying to downsize or some other reason for which he/she may be in a hurry to sell the home. If he/she is in a hurry to move out, your job becomes a little easy. Anyway, whatever be the reason, do not show much enthusiasm and don't lowball the offer. It is advisable you set an expiration date for the offer and prepare yourself to walk away if you can't work on a suitable deal by that time. There are several similar properties elsewhere which you may like much more.
- Take out a suitable mortgage loan - It is very much necessary to get pre-approved for a loan before you begin your search for a suitable property. Also, lock in your interest rate along with other loan terms and conditions and get a written confirmation of the same from your lender. Once your purchase offer gets accepted by the seller, you should take initiative to satisfy the underwriter's checklist as a prospective borrower. So, submit required documentation so that your loan gets approved for closing.
Last but one of the most important steps is to close the deal. So, hire a good escrow company which can handle the entire transaction of property, smoothly. After everything goes right, you close the deal by signing the required papers. In the excitement of getting a good property, don't forget to buy suitable home insurance coverage so that you are covered against any financial loss due to damages caused to your home as a result of natural disaster or due to theft. And, continue making the required monthly mortgage payments so that you can repay the home loan within the stipulated time period.