Common Negotiation Strategies To Use When Buying A House

Common Negotiation Strategies To Use When Buying A House

Common Negotiation Strategies To Use When Buying A House

6 January 2021
Real Estate, Blog

Negotiating is a common process that people use when buying or selling a house. Both the buyer and the seller negotiate when trying to settle a deal, and their real estate agents typically assist them during this time. If you want to buy a house, your agent can help you know how to negotiate on the purchase. Before you begin the process, though, it might be helpful to learn some negotiating tips that you can use to land the best deal.

Offer a High Price with Contingencies

One of the best negotiation tools to use when buying a house is offering a high amount for the house with contingencies. The first thing the seller will look at on the offer is the amount you are willing to pay. By providing a high amount, it might improve the odds of the seller accepting it. To offset the amount, you can ask for contingencies. For example, if you provide a full-price offer and ask the seller to pay $4,000 in closing costs, you are really offering $4,000 less than the offer amount. Asking the seller to pay for closing costs is just one of many contingencies you can include in your offer. Any contingency that requires the seller to pay for things reduces the amount you pay for the home.

Negotiate After the Inspection

The second tool you can use to achieve the best price for a home is a home inspection contingency. When you add this to your purchase offer, it gives you the right to hire a home inspector. After the inspector completes the job, you will receive a list of issues they found during this assessment. You can use this list of issues to negotiate even more on the deal. For example, suppose the inspector finds multiple issues with the home that add up to $15,000 in repair costs. You can negotiate a lower price for the home based on this list. You might ask the seller to split the costs in half, allowing you to buy the house for $7,500 less than you originally offered. You can also ask the seller to fix all the issues instead, allowing you to move into a home that has no problems.

If you need advice when negotiating on a house purchase, talk to your agent. Your agent might suggest these strategies and others, and using the right ones can help you pay less for a home. Contact a real estate agent for more information. 

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Getting Real About Real Estate

Buying any piece of real estate is a big undertaking. You need to do your research and know exactly what you're getting into. You also need to hire an attorney, have the place inspected, work with a lender, and collaborate with your real estate agent. When it comes to such a big undertaking like this, it is really important to know what you're doing. So even if you are not planning to buy for a year or two, it is not too late to start learning. Browse the articles on this website to get started, and you'll watch your own knowledge grow.