When buying a home, you can expect to negotiate with the seller or estate agent for a better price. In fact, many homes end up selling below the asking price, since most sellers ask for slightly more than market value to account for negotiations. Your ability to negotiate could have a huge impact on whether or not you pay the best possible price for your property. Here are some tips to help prepare you for this part of the home buying process.
1. Don’t be afraid to negotiate
While asking for a better deal may seem awkward at first, it is completely normal to haggle for a house price. The reality is that haggling and negotiating happens regularly in the real estate business, and many homes sell below asking price every day. Most sales people are not offended by you asking for a better price, and it is often quite the opposite, as this signals your interest in buying the property. However, it is crucial to ask politely and avoid any hostility and confrontation during negotiation.
2. Research the local area
Researching the general property market alone will not be sufficient knowledge during your negotiations. Rather, it is more important to take notes of house prices in the area you are considering, especially recently sold properties that are similar to the one you are attempting to purchase.
3. Don’t show too much excitement
So you’ve found a property that you love. It may be hard, but try not to jump for joy or visibly show your excitement too much. If you do this, the seller and their agent will assume that you’re prepared to pay above their asking price. Instead, play hard to get. If there is a feature of the house that could be a weakness (like an outdated kitchen or bathroom, for example), tactically point this out during negotiations and suggest that the price should reflect it.
4. Have a breaking point in mind
You will be in a stronger position to negotiate if you have a price that you will not go above in mind. This price is called your ‘breakpoint’. It is crucial to always walk away if your breakpoint is passed, and to not be afraid to say ‘no’. Emotional decisions have no place in important negotiations.
5. Don’t be afraid to walk away
If the seller does not budge on the home’s price, it is ok to walk away. While it can be tempting to spend more than you planned to, it is important to not get too emotionally attached to a property, as the seller may be hesitant to part with it for a number of reasons. You should enter the home buying process assuming you will need to walk away from every home you see. Ask your estate agent to set up multiple showings within your price range. This way you are not forced to overpay for a home when you could have gotten a similar one at a much better price.
