Tips For Negotiating the Best Price on a House

When you've finally found the house of your dreams and want to make an offer, you may feel unsure on how to proceed. Do you offer the seller their full asking price? Do you offer something significantly less? The answer depends on you. One important thing to consider is who has the upper hand in the transaction.

Generally, the seller has the upper hand when:

• The local market is strong and houses sell quickly
• The seller is in no rush to move
• Houses in the neighborhood tend to sell at or above the initial asking price

Conversely, the buyer may be in a stronger position when:

• The local market is weak
• The seller needs to move quickly
• The house has problems needing repair
• The house has been on the market a while

The current state of real estate tends to favor buyers, so knowing how to negotiate can really help you get the best possible price.

Keep Your Cool –

When you're walking through a house and you know it's "the one", try not to wear your heart on your sleeve. If the sellers' agent can see that you love the house, they may tell their client to stand firm in negotiations.

Make Notes of any Flaws or Problems –

Without being overly negative, be sure to bring to light any cosmetic or structural problems you see to the seller's agent. This way they are aware of your concerns, and when you make an offer below asking price you can justify your price.

Know the Neighborhood –

Work with your agent to figure out what homes have recently sold for in the area. Knowledge is power, and if other homes are selling for 15% less than the original listing price, you can feel comfortable offering the same. On the other hand, if the market is still strong, you'll know that you probably don't have a lot of "wiggle room" on the price.

Once you offer a price you feel is fair to both you and the seller, the wait begins. Generally, the seller will counter-offer a higher amount than you offered, and the negotiating continues until both parties can agree. Besides price, other negotiation points can include asking for certain fixtures or appliances you may like, or asking for repairs to be made.

Be sure to get a home inspection done as a follow up, especially on an older home. If something serious should be found, you may want to re-counter to allow for repairs or remediation.

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