A lot of people don’t know whether they should negotiate house prices or not, and many people feel nervous about it. But you absolutely should negotiate instead of agreeing to the asking price because you can save a lot of money. However, it’s important that you go about it in the right way if you are going to get the seller to agree to a reduced price. These are some of the best ways to negotiate house prices.
Look For Foreclosures
When you are looking at homes, consider looking for foreclosures because they are often in a hurry to sell up. Often, the bank will offer a foreclosures, Short Sales option, so the owner has a limited period to sell up before the bank reclaims the house. The bank will set a minimum asking price that they are willing to accept, but the owner will often push higher than this. However, you are in a strong negotiating position because of the time pressure, so you may find it easier to negotiate. Having said that, it is important to note that some homeowners are bitter about the foreclosure and will not budge on the price. Either way, it’s still worth looking into foreclosure homes to see if you can get a better price.
Research The Property Market
If you go in with some vague notions about the property market and what other houses are selling for, you won’t get anywhere. You need to be specific and show the seller that you know what you are talking about. This is a little easier if you are buying a new build because they are more directly comparable to other new builds in the area. But if you are buying a period property, the prices will vary a lot depending on the state of the home, so a home around the corner may sell for a lot less because it needs a lot of work. It’s important that you do research into the local property market before you start negotiating.
Hide Your Enthusiasm
If you walk into a house and tell the seller that you absolutely love it and it’s better than any other house that you have viewed, that leaves you in a pretty weak negotiating position. It’s important that you hide your enthusiasm and come back for more than one viewing. That will put you in a much stronger position when you start negotiating because they will assume that you are still in two minds about putting an offer in.
Convince The Estate Agent
It’s important to remember that the estate agent is not working in your interests, but they do want to sell the house as quickly as possible. Never let them know what your upper limit is, but do make it clear that you have already saved the deposit and spoken to the bank about a mortgage, so you’re ready to go, just as long as you can knock the price down. If the estate agent is on your side, the seller will be easier to convince.
Negotiating houses prices doesn’t always work, but if you follow these tips, you stand a better chance of getting a good deal.