If you are looking to reduce the price of some real estate that you are hoping to buy, then there are a few things that you should remember during the negotiation process.
Remember that in the world of property, everything can be negotiated. Usually the buyer is in a very strong position – especially if there is a property chain going on, because the seller wants to get rid of the property ASAP.
The more you know about the neighborhood, the better position you will be in to push for a favorable price. If the area that you are looking to buy property in is one where there are more houses for sale than there are buyers, then you know that you will have some room to barter. In areas where there is a lot of demand, however, your negotiating position is not as strong. However, you can always strengthen it if you have inside knowledge – is there going to be new property built soon, for example? What is the crime rate like in the area? Is the condition of the property good compared to the other properties in the area?
One thing that a lot of sellers don’t realize right now is that property prices are not rising as quickly this year as they did last year. This means that they are often over-pricing their homes, and you can negotiate if you are confident.
Most properties are listed online, so it is relatively easy to compare property prices. You can even look at historic prices, so that you can shop around and see which areas are the best in terms of favorable pricing.
It is not always a good idea to try to negotiate by yourself, though. You may be better off getting an agent to negotiate for you. Buyers don’t have to pay a lot of money to use an agent, because the real estate commission will be covered by the person who is selling the property. A good agent will help to make sure that you get the property you want, or that the deal is finished. They will not let the deal fall apart.
To strengthen your mortgage bid, try to get preapproval on a mortgage. This makes your offer look much better, and will help you to get the best price. Remember that a lot of sellers won’t even show a home to a buyer unless they are pre-approved, and that process can take a long time.
Don’t worry too much about the exact price of the property – when it comes down to differences of just a few thousand dollars if you can actually afford the mortgage. Focus on getting in the right ballpark – if you find the right property and the price is within your budget, listen to your head rather than your ego, and understand that the negotiation was for practical purposes, not to try to get a moral victory on the price.