How to Negotiate a Real Estate Bargain

Wednesday, April 4, 2012

How to Negotiate a Real Estate Bargain

Once you’ve found the home of your dreams, you put in an offer to purchase the property. This may seem like an easy process, yet there is a skill to knowing how to negotiate an offer on a home. An experienced negotiator knows that the listing price is rarely the final price for the home. He also has a price in his mind that he would like to pay for the home and will know how to work towards that goal of achieving it.

The selling price of a home is typically recommended by the real estate agents. They base their price on the comparative homes in the market around the area. When it’s time for them to negotiate a sale, they will try to achieve the highest price for the property because they work for the seller on a commission basis. Since the real estate agent’s commission is based on a percentage of what they sell the home for, they are highly motivated to get the most they can for the property and take home a sizable fee.

If you’re a buyer, and want to get the best price possible for buying a home, you need to know the basics on how to negotiate a good deal, something a professional with a certification as a business analyst already knows!

Get to Know the Market

Do your homework to see the current direction the housing prices are - both nationally and those within your region. The economic forecast dictates where the market is now and how it fluctuates. If the housing market is on a slump, this is a “buyers-market” and a great time to make a low offer to get a good deal. You or your real estate agent will be able to look up what similar homes have sold for in the area, so that you can make an educated offer.

Start the Negotiation Process

Before you put an offer make a list of any items that you would like to include in the sale of a property. Discuss these items with the seller in detail to avoid discord later. If you are unhappy with what is being offered, get a feel for the seller’s motivation and use it as a means for bargaining a better deal for yourself. A seller who is under hardship may be willing to part with the home for a cheaper price.

Bartering for a Good Deal

When it’s time to bargain, provide written examples of how you came to that specific price. Sound evidence and a solid argument help a seller see where you are coming from and why the home is not worth the price he is asking for. It’s also important to hire a reputable home inspector to check out the condition of the property. If the home has problems and is not as sound as the seller states, a buyer can try to seek out lower price for the dwelling. Keep in mind that a real estate agent is a professional at what he does and will try to negotiate a higher price for the seller to maximize his commission on the final sale of a home.

Finalizing the Deal

Once both the parties have agreed with the final sale price, hire an attorney to go over the documentation leading to the sale of the home. This shows the realtor and seller that you are serious about your offer and you would like all showings to be stopped on the property immediately.

These helpful tips will aid you in negotiating a great deal when you’ve finally found the perfect home of your dreams. 

Author: Andrew Potter

He writes for My Online Estate Agent, the online estate agent that offers guides on how to advertise on Zoopla, Rightmove and Find a Property.


Ahmad Abdullah said...

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Pradeep Nagar said...

Thank You

The given information is very effective
i will keep updated with the same

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