Have you found your dream home and are ready to negotiate? This guide explains how to negotiate a price on a home so you can get the best deal possible.
The average cost of a home in the United States is about $230,000!
Considering the average amount of money in the average American’s (35-44 years) savings account is $40,500, it’s fair to say that many people are priced out of the residential real estate market. This is the reason many prospective homebuyers turn to mortgage lenders for help.
So if you’re preparing to purchase a home, you deserve a thumbs up! Now the next step is to find your ideal property and snap it up. But how do you secure the best price?
Keep reading to learn how to negotiate a price on a home.
Get Your Facts Right
As a buyer, you want to head into the negotiation with all the information that can help your case.
For instance, you need to know the average cost of similar properties in the same neighborhood. So if the home you want is going for $300K and the average cost is $220K, the seller must be able to account for the difference.
Another crucial piece of information you’ll need is your target property’s appraisal report. The seller will typically oblige to your request for the document. Dig in and establish the current condition of the property and how it’s affecting the price.
Lastly, you want to have a good view of where the neighborhood is heading. If things like crime are on the rise, property values should come down. Point this out during the negotiation.
Establish the Seller’s Needs
People sell their houses for different reasons. While some simply want to upgrade and are in no hurry to sell, others are in more pressing circumstances. Perhaps the home is in pre-foreclosure or they’re moving for work.
Although it might not be possible to know the seller’s circumstances, don’t shy away from asking anyway. Also, pay close attention to the cues they give off. For instance, if a seller or their agent call you soon after you’ve viewed the property, they’re likely looking to close a deal quickly.
Either way, if you can establish that they’re looking to sell quickly, there’s a good chance they will accept an offer that’s nearer to their valuation. Take advantage of that.
Don’t Focus on Just the Price
Most newbie buyers often focus on haggling over the actual price. But this isn’t the only thing you can negotiate on to get a better deal.
For instance, you can also push the closing costs to the seller, or ask them to leave behind an item that they would ordinarily move out with, such a lawnmower and the pressure washer!
Get Professional Help
If the only negotiating experience you have is getting the grocery store owner to knock off a few bucks off your bulk purchase, don’t think that gives you enough cred to negotiate a house price. The seller will probably slash the price by $1,000 and you’ll assume that’s the lowest they can go.
This is why you need professional help. Hire an experienced real estate agent.
Yes, you will pay them a commission, but they’ll secure you the best deal. Be sure to find out more about how a professional will help you.
How to Negotiate a Price on a Home Like a Pro
A house is one of the biggest purchases you’ll ever make, but that doesn’t mean you have to meet the stated price. With this guide on how to negotiate a price on a home, you’re now in a better position to bring the price down and seal the best deal.
All the best and keep reading our blog for more home tips!
