Facebook Twitter

Negotiating the Best Price When Buying a Home

Posted on April 2, 2022 by Jorge Rubio

When you buy a house, you want the best possible cost. This often requires a little negotiating on your part. Many buyers dread negotiating when purchasing a house. Money is an emotional topic. But bear in mind, this transaction is not all about money. It is about making the vendor feel like he or she's receiving the best end of the deal.

Start by not placing a ridiculously low first offer. This will not get you off to a fantastic first impression. Many times, the vendor is offended and will not create a counter offer back to you whatsoever. You might have believed that by low-balling it, you'd come out somewhere in the middle -- but that's a small gamble. At times, the seller will also counter with a higher asking price than the house is listed for. This will frequently occur in a seller's market. If you make a low offer, get ready to defend why you're offering so little. Add your motives, such as possible fixes, without being offensive. Sellers are more willing to hear a price cut if it's rational and fair.

Be prepared to provide the purchaser something in return for cash. You might want to provide a lower price and provide a quick thirty-day final in return. You could already be pre-approved, which can aid you with the seller. You could offer to pay a part of the closing prices or take the house with it's flaws.

You also need to be happy to put earnest money down on the house. Sellers will often pick the offer with the bigger earnest money deposit. This gives the impression that you're really serious about the house rather than a financial risk. This often works in a seller's market when there are many offers on the table.

In regards to discussions, just put yourself in the vendor's shoe. Be polite and honest. Bear in mind, you have to win to make the real estate transaction function. Decide how far you're prepared to go to make it happen.