How to Negotiate When Buying a House

Buying a home is a bartering process.  Like when you’re shopping for cars or picking out goods in a thrift market: don’t settle for sticker price.  Given the right conditions, you can talk the price down by tens of thousands of dollars, making buying it even better.  Here are the top ways to talk the talk and get your dream home for a dreamy price.

What Market Are You In?

Is your city in a buyer’s market or a seller’s market?  This can change many things and should be considered before you even start shopping for a home.  In a buyer’s market, you wield power.  There are more sellers than buyers at these times, which means you can negotiate the price down, have the seller cover closing costs, and even get them to handle repairs on top of everything else.  They’ll ask themselves, ‘what is my home worth’ and you have to be ready to tell them what it’s worth to you.

Is There Any Work Needed?

When you have the home inspected or walk around the property yourself, does it look like there’s any work that needs to happen?  Some projects may seem simple at first glance, but these projects add up and can be extraordinarily expensive.  Instead of putting your wallet through this, talk to the seller and point out these issues.  Regardless of the market, if you seem solidly interested and only have these issues with the home, many sellers will either repair it or will accept a lower offer so that you’ll look past the flaws.  There’s nothing wrong with using these issues for bargaining.

Are You Paying In Cash?

Paying in cash isn’t impossible, but most home buyers purchase using loans or credit.  If you’re willing and able to pay in cash, it’s the best way to ensure you can get a good deal.  Sellers don’t want to have to deal with banks or lenders any more than you do, so saying that you have a cash offer and you get to skip most of the hassle is like music to their ears. In addition, paying in cash can help you bargain prices lower and possibly earn extra perks like requesting furniture you like being left behind at no additional cost.

Do You Have An Agent or Realtor?

Having a professional in your corner is the best way to ensure a win.  You may assume that this added-on cost would be a pain, but a good realtor or agent can negotiate your price low enough that you won’t have to worry about their fees.  There’s nothing wrong with asking a professional to help you succeed!

Think About Closing Costs

If you want the house and sellers are sweating trying to get rid of places, you may take this chance to request they cover closing costs.  These costs can range between four and six percent of the home price and can drop your out-of-pocket price incredibly low.  Although this can be difficult to negotiate if the market’s not ripe for it, the potential savings is incredible.