How to Negotiate the Purchase Price on a Home You Want

Before you pay the full asking price for the home you want, find out if there is any room for negotiating. If the seller realises you are serious about buying, they may work with you in order to get it off the market. You really don’t know unless you ask!

Be Ready for the Process

There is a process you need to go through, and it starts with making an offer in writing. Do this through the real estate agent. It should have the price you are willing to pay and the other conditions of the purchase. For example, you may wish to include it is contingent upon loan approvals and inspections.
If the buyer accepts your offer, it is a done deal. If they don’t, they may stick firm to what they ask. If that is the case, you need to decide if you want to buy the home for that amount or keep looking for a cheaper house. There is a good chance they will come back with a counter-offer. This is more than your offer but less than their original asking price. The negotiations can go on and on with thisuntil you both agree on a price or one of you no longer budges and the saledoesn’t happen.

Evaluate the Market

You need more than luck on your side to negotiate a better price for the home you want. Spend some time evaluating the market price of what is out there which is similar. Armed with that information, you can often get a better price in the end. Show confidence in what you are asking for, rather than being nervous.

Firm Limits

If you have a set amount you can spend which is less than the asking price, put it out there. If the real estate agent knows you are approved for a given amount, they may take that information back to the seller. Knowing they can get a sure sale (if they agree to your price), can encourage them to accept it. Otherwise, they may choose to take their chances and see it stay on the market for a longer period.