7 principles to negotiate the selling price of a house
The idea of having to sit down with the seller to hear about the final sale price of a house is terrorizing you? You have never been very inclined to negotiate and you simply do not know where to start?
Remember first: the goal of negotiation is to find common ground. No need to leave the knife between your teeth. Use these tips to get you through this important step:
1. Aim for a “win-win” transaction
Approach negotiation with humility, openness and respect. In order to seal an agreement, everyone needs to find something. Listen to the seller and try to establish a relationship of trust with him.
Do not make the mistake of starting the discussion by offering him $ 75,000 less than he wants. Stay realistic.
2. Know the market before negotiating
Take inventory of homes for sale and those sold in the area you are looking for. Then compare them with each other, focusing on dimensions, inclusions and, of course, the asking price. This step will allow you to get an idea of what can be a reasonable price for the house you are looking for. It is also by doing this exercise that you will be able to distinguish a windfall from a property that is overvalued.
3. Talk to the owner before making an offer
Enjoy the visit to discuss with the seller. Ask him if he has had many visits, if the house has been for sale for a long time, if there are any particular reasons for selling, if there is work to do, etc.
Collect as much information as you can This will be useful for the future. For example, the negotiation will not proceed in the same way with the seller who has already received two offers to purchase in 24 hours with the one who has been waiting for an offer for 2 years.
4. Base the negotiation on a solid argument
Once you have a better understanding of the market and have visited the house, you should already have some ammo to negotiate. If you can not agree on the price, explain to the seller why you are making a lower bid than they are asking for. For example, if the inspection report shows that the windows must be changed and the roof is redone, you may have a valid reason to make an offer to buy less than the asking price.
5. Master your emotions
It may be difficult, but even if you fall in love with the house, try not to be too enthusiastic. If you end the visit of the property and you beg the seller to sell it to no one but you, it may be difficult to convince him to lower his selling price …
6. Be patient
Not everyone has this luxury but if you can take your time, you will come out a winner. You will have the chance to see more properties and get a better idea of the market. You can also take your time to conclude the agreement with the seller. If he refused your first offer, you could call him back a few weeks later and check if the house is still for sale. If so, he may want to reconsider his position.
7. Demonstrate that you are serious
Take a complete tour of the house, ask questions, take notes, talk to the salesman about your efforts, in short, prove to him that you intend to buy a house. Act as an expert and you will gain credibility.
On the contrary, if you lack confidence, you will have a hard time convincing yourself. Finally, remember that you have the right to negotiate and that it is part of the normal process of selling a property. So do not be embarrassed to deal with the seller. Applying a few of these tips will allow you to do so with confidence and possibly save a few dollars.