Buyers. Negotiating the Price: Tips to Win

Negotiating House Price
Remember, the goal of your negotiation is to buy a house for the amount of money you are willing to pay. Think of the highest maximum bid that you can afford and do not ever offer more. It would be ideal to get an understanding of the seller’s motivation to sell.
  • Do they want to sell it because they are moving for a new job?
  • Has the property price been reduced due to an extended time on the market?

In both cases it is likely they will want to sell quickly. You can stand your ground if they have a counter-offer. But, when you stand ground, sometimes the seller may not sell to you and will choose to work with another buyer. It is always their choice.

If the house has been listed several times with a stable price, it is a sign the homeowners are taking their time and may be waiting for the highest offer or just seeing where the market is at that time. Typically, this type of seller is not serious enough to sell their home.

Depending on what kind of market you are in, strategy and tactics will vary. In a buyer’s market, you have more possibilities to succeed. You can make a less than reasonable offer, demand for some house improvements, better closing date and even closing fee payment by the owner.

In a seller’s market, you have less leverage, as you are not the only one in line. You are most likely to succeed by offering a seller’s price. If he does not get it from you, he will receive another offer very soon. At times, you may be in a multiple-offer situation.

It is vital to understand that both the buyer and the seller may forget the final goal: to buy and to sell. Sometimes the parties get carried away in a battle of negotiating. Lock your eyes on the ball, but at the same time be realistic in your expectations of the situation.

The following tips will hopefully help you to stay focused.

Tip #1: Use your Middleman

Your real estate agent can act as your middleman and negotiate with your seller’s representative.
Using your realtor as a buffer will not only save you time, but it may also provide you with useful information concerning the sellers motivation to sell among other things which they may not disclose to you directly.

Tip #2. Use the property experts

The current tactic is somehow similar to the first one. Some third party (attorney, inspectors, appraisers) need to see the property and evaluate the offer and give his or her expertise based on their experience and knowledge of the market.
Tip #3. Consider Compromising

If you think that you might lose and fail the whole deal at one point or another, be ready to give away something during the negotiation. Being flexible is not losing, but winning in a negotiation. As they say, compromise means that you agreed in the end, but both of you left with a feeling that worked out for each party’s best interest. Win, Win situation is best.
Tip #4. Focus on your future

Remember your main goal: to acquire the house.
If you feel that you are stuck in negotiating some minor details, a good decision will be to wait a bit and try to agree on the major points. Sit down and write the pro’s and con’s of the deal and see if you find a way to be fine with the deal and getting the house.

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M. Chacon Torres Real Estate Broker