It ended up happening! You’ve come across the home you want to buy. The next move, then? Make sure you get the right price for this home. That is why we have prepared this guide on tips to negotiate a house’s price.
Knowledge of private rentals is central when it comes to real estate and homeownership. Although your real estate agent will be able to explain the market and direct you through the art of negotiating a house’s right price, it is also wise to do your research and consider the tactics that you want to pursue. This will help both of you appreciate home buy price negotiations.
If you’re looking for a guide to help you through your home purchase deal-making process, these five tips for negotiating a house’s price will be a great place to start.
1. Research The Market
It is always a good idea to know what kind of market you’re going into as a buyer before you can step into the negotiating process. If you negotiate a house price in a buyer’s market, there would be more homes to sell than buyers to purchase them. In this scenario, at the price you want to pay, you have more leverage to bid and ask the seller to pay for closing costs or leave the appliances. However, it won’t be as straightforward if you bargain the price in a seller’s market where there are more customers to sell to. Not only will you have to travel quicker, but when it comes to borrowing, assessment and review, you will also have to stick to the basics. If the market is healthy, expect to get and give until both you and the seller are satisfied.
How do you know the sort of real estate market that you are in? Check sites such as the Canadian Real Estate Association (CREA) and the Canadian Mortgage and Housing Corporation (CMHC) for monthly or quarterly assessments of their homes.
2. Research The Actual Property
Knowing the person you are dealing with is always helpful in every form of transaction. If you can figure out why the seller is leaving, you will be able to use this to your advantage when making the bid. If they have been selling their home for months, they can be ready to close and may have a short deadline for inspections. In the other hand, if the buyers aren’t quite happy to leave their home, they can offer a longer closing or leaseback, enabling them to rent the house for a short period.
As well as finding out why the seller is moving, collect property details through public records and online real estate listings. Knowing if the house was on the market before and at what price would help you to put together a better plan for negotiating the home price.
3. Think Outside The Box When Negotiating
Negotiating the home price doesn’t necessarily have to do with the sale price. Among the prices, you can also discuss items like the length of time to close, the period required for inspections and which of the products will be included in the order, if any. If you find any major changes that are required during the inspection, you may be able to resume negotiations, but you may also be able to obtain credit at closing so that you can hire your contractors to make the changes possible.
If you’re a first-time homebuyer, you might be shocked to hear about closing costs and fees associated with a home purchase that typically ranges from 2 per cent to 5 per cent of the purchase price — and has to be paid for separately from the down payment. Closing costs are luckily another component of the deal which can be discussed with the seller.
4. Write To The Owners
Owing to the memories made during the time you live there, homeownership always comes with a nostalgic attachment. If you want this home you have to let the sellers know about it. It could be just what the sellers are looking for to add a personal touch by providing a personal letter along with your bid that expresses why you love their home to them. Are you getting married again? Have you got a baby on the way? Telling them all about you and why their home is your dream property transforms you into the person who will love the property just as much as they did from just another prospective buyer.
5. Be Realistic And Flexible
You can’t always achieve what you want, as the saying goes. Try to join the ready-to-compromise negotiating process and negotiate with the seller to ensure each of your needs are understood. When you are negotiating with an attorney, make sure that the goals and deal breakers are on the same page. Bear in mind, it’s normal for another buyer to lose out — especially if you’re in a competitive marketplace — and sometimes the negotiations may fall through. Consider negotiating a learning opportunity on a house price, and note that the right agent can help you negotiate a deal that’s right for you.
To advertise on realestate.com.au and negotiate a house’s price to get the best deal, you need to study the state of the local market to consider how motivated the seller is. Do not forget to note that contingencies can be as critical as price, so you can make a big difference by writing a personal letter with your bid. Compromising is, above all, incredibly necessary during the negotiating process and can make the property’s sale longer but well worth finally landing the home you’ve always wanted.