How To Negotiate Purchase Price Of Home
Here are some very important tips on how to negotiate the purchase price of the home you desire. The art of negotiating is one of the favorite things for a real estate agent. Agents love the battle that will prove who is the smartest and the best real estate agent. An agent loves to haggle and defeat the other agent, so she can win the commission and future referrals of her buyer. An important test for all agents is the art of negotiating the price of a home.
- Never Act Overly Interested, But Be Enthusiastic. Rule number one in all negotiations for a home is never act overly interested in the home. A buyer who talks too much is a buyer who will in the end pay a higher price for the home. Selling agents and sellers are very savvy in this game of negotiation and they will watch how the buyer reacts in the home. But show the seller that you love his home and appreciate all the love and care he has put into the home. Show him that you are ready to go forward with the financing if your reasonable offer is accepted.
- Always Have Other Alternatives. A buyer who has no other alternative and desperate for this particular home will pay a higher price for the home. A buyer who insists on having this home at any price will of course end up paying a higher price for the home. A buyer who has other homes they can bid on is less likely to cave in to a high priced home. Your agent can negotiate better when she is able to mention to the seller that there are multiple homes you are interested in.
- Do Your Homework First. Before making a bid on a home, do your homework and research the property thoroughly. By knowing the neighborhood and its current selling prices, you will know when the negotiations are going too high. Research what other properties have sold for first. A listing price means nothing.
- Never Be Desperate to Have This Particular Home. Never act desperate in front of the seller. Letting the seller know that this is the only house that you qualify for will cause the seller to resist negotiating on the price of the home. Desperation will show every time in the face of the buyer. Let the Realtor negotiate for you and never have eye contact with the seller or his agent.
- Counter Offers and Waiting. When the seller gives you a counter offer...wait. Always wait 24 hours on all counter offers unless there are multiple counter offers being given to other buyers. A buyer who wants the best deal must wait and then respond.
- Always Counter the Counter. Never ever refuse an offer that has been presented. If the offer insults you, then cover up your pride and counter their counter anyway. If you receive a counter offer, counter back with a reasonable offer of money or terms. If the seller insists that he will not budge on the price, ask for the appliances or new carpet. Everything is negotiable in the sale of a home.
- Be Stubborn. Never look desperate, have other options, counter the counter, and finally, be stubborn. Being stubborn means sticking to your guns. If this house is really the one you want, then follow the above steps and then step back from the home for a week or so. This way the seller has time to think and so do you. After one or two weeks, have your agent contact the selling agent again and try to negotiate once more. If after the second try, the deal cannot be negotiated, then walk away. Accept that some deals are not meant to be and go on to negotiate the price of a home that will fit into your budget and desires.