The Right Way To Do Price Negotiations In Real Estate

Posted on: 27 July 2017

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So, you've found a home you love after months of searching. The only problem is that the price is a little higher than what you'd like to pay. Sometimes, tactful price negotiations can help. Here is a good way to size up the right price for a negotiation and complete it successfully.

Know Your Competition

Your ability to do price negotiations may be limited by your competition. If 20 other people are eagerly looking at the property, what's to stop the seller from just choosing their higher offer? So, it can be a bit tricky to make a fair offer and beat out the competition. That's why strategy is needed.

Get Your Real Estate Agent or Attorney Involved

These negotiations go best when done by a real estate agent or attorney for home closing. They can succinctly state the reasons for the reduced offer and also follow that up with what you offer as a buyer. An attorney like Adamek J David will put everything in writing and help finalize paperwork for a swift negotiation.

What Do You Offer?

Is there anything that makes you stand out as a buyer, despite the lower offer? That could be, for instance, personal ties with the seller. Try to make a connection with them on your background, common interests, or even mutual friends. Sellers want to have someone in their home who will take care of it and appreciate it as much as they did. That might not make up for a very low offer, but it's something many sellers consider.

You could make your offer more appealing by helping out the seller with logistics. Could you make your move-in date earlier or later to accommodate the seller's move-out? Can you pay in cash or get your loan papers settled very quickly? Selling a house is a lot of work, so the seller might jump at the chance to make their life easier while also conceding a few thousand dollars to you.

What's Your Good Reason for Lowballing?

Offering a lower price than the asking price may be seen as a slight to the seller if you don't have any good reason. That's why you have to find a good reason and document it. Hire your own home inspector to do a thorough job of outlining problems with insulation, HVAC systems, electrical wiring and more. All of these small problems could amount to a few thousand dollars of justified discounts. And especially if you uncover something the seller didn't know, they would be more inclined to honor your request for a price reduction.