When you want to buy a house from a seller, at first, you look at the property to ensure that the amenities are what you are looking for and then you calculate your affordability. After this, comes negotiation; and in most cases, you need to negotiate with the seller regarding the buying price of the house, so that it is within the amount which you can afford.
5 Tips to negotiate on the buying price
In order to negotiate on the buying price with the seller, at first you need to know the intention of the seller behind selling the property. The knowledge will help you negotiate on the price on your favor. So, ask the seller why he/she wants to sell the property. Is it that the seller wants to move urgently due to an unexpected job change or he/she wants to downsize as he/she has retired? If the seller is willing to reduce the listing price after you make an initial offer, then might signify that he wants to sell the property fast. However, if he/she doesn’t reply back fast, then the seller might not sell the property less than the price he/she has quoted. Read below for useful tips on negotiation.
- Do not put your heart and soul to buy it – Do not negotiate with the intention that you will have to buy it may what come. Even if you have liked the property very much, remember that there are similar types of properties elsewhere, which you may like even more. Therefore, do not agree on the buying price if it doesn’t suit you.
- Make a realistic offer on the buying price – Do some research before making the initial offer. It is advisable to not quote a very low price as doing so, the seller might not agree to discuss with you regarding selling the house. Remember that your offer has failed if you do not get any meaningful counteroffer from the seller soon. It is very much important to make the seller believe that you’re interested in buying the property, which in turn, will begin the negotiation process.
- Be firm with the offer you have made – When you make an offer, it’s quite obvious that you have done your homework well. You know at what price the similar properties are selling in that area and how much you can afford. So, do not get carried away at what the seller is trying to convince; instead, defend yourself with the figures to negotiate on the price on your favor.
- Do not show your eagerness to buy the property – Do not ever reveal your eagerness to buy the property even if you’ve liked it very much. If the seller comes to know that you’re very much eager to buy the property, then it is most likely the seller won’t negotiate on the buying price.
- Set deadlines for buying the house – If you are working with a real estate agent, then you along with your agent should make the seller believe that you will not wait for a long time to buy the property. While making an initial offer, set a time limit, usually within one or two days, within which you ask the seller to respond. Doing so, you can avoid a competitive offer from others.
It might happen that the seller doesn’t want to negotiate on the selling price. In this case, you can ask him/her for certain concessions such as, some repair work, which will help you financially. So, understand the seller’s mentality and negotiate on that basis so that you can buy a suitable property which you can afford.