Negotiate a House Price in a Buyers Market
Negotiating the price of a house can be a frustrating experience. For most people, a home is the largest purchase they will ever make and it is important to not walk away with buyer's regret after the transaction is complete. A buyers market puts more control in the hands of the buyer and in many cases, more room for negotiation of the price.
Instructions
1. Make the seller think he is winning the negotiation. The key to any successful negotiation is to make both sides think they have won. You can do this by not immediately accepting any offer, which will make the seller think his price was too low. You may want to offer to split the difference between your offer and the asking price. This will seem like a win-win situation. Both sides are giving up an equal amount to arrive at a price in the middle of the two proposals.
2. Rely on an outside party or someone who is not readily available when a counter offer is made. By saying that you need to talk over the offer with your spouse, a parent or business adviser, you can make that person the bad guy while maintaining the relationship with the seller when you tell him the price is still too high. This is a common tactic used by car salesman when they take your offer to the sales manager of the dealership.
3. Gather information about the market. To successfully negotiate a fair price, be armed with information about the real estate market in the area. Compile recent sales prices of homes in the area as well as pricing trends in the neighborhood and surrounding areas. Find home sales that can back up your offer and possibly even make your offer appear more appealing because it is a bit higher than recent home sale prices.
4. Concede in areas other than price. The price of the home is only one area of negotiation. Other areas may include who pays for closing costs, who pays for any needed repairs or items such as appliances that you would like to be included in the sale. If you cannot get the price to what you think is a great deal, consider negotiating other options.
5. Enlist the help of a professional. An experienced real estate agent can be a great ally in negotiating the price of the home. As the buyer, you lose nothing by using the services of a real estate agent. His fees are covered by the seller when the home is sold.
Tags: your offer, real estate, Buyers Market, estate agent, House Price, House Price Buyers
