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How to negotiate a reduction in the purchase price of a house?

 

In a real estate market that is slowly recovering, it is possible to get a reduction in the price of the house thanks to a good negotiation. This is one of the most complicated phases during the home buying process.

At the time of negotiating the price of the house, the buyer must be very tactful not to make very low offers that send the operation to ruin, even more so if the house really meets our expectations and objectives. However, if we try to obtain a better price, we must argue the reasons for said reduction, being firm and clear. In this sense, it is often interesting to have the advice of real estate professionals, with great knowledge of the market situation in the area that interests us, and experts in negotiating the price of housing.

buying a house

If you are thinking of buying a house, we give you some keys to get a better price on your home.

Carry out a preliminary market study

Once we have an idea of the type of house we would like to buy, which meets certain requirements (if we want an apartment near the beach, an independent villa in a quiet area, a well-connected house close to all services, a bungalow in an exclusive urbanization, etc.), we must make an analysis of the price of the area where we want that house.

To properly calculate the price of the home we would like to buy, we can study the offers on portals and real estate agencies, using homes with similar characteristics. In this way we will know whether or not it is in market price

Not giving too much information on the first visit

The first visit to the home is key to negotiating its price. We must be prudent in our first impression, not showing an exacerbated interest if the house fits us within what we want.

Faced with this situation, we must establish the negotiation possibilities, investigating some details that are useful to negotiate: how long has the house been for sale, why is it being sold, how many people have seen it and made an offer ...

We should therefore not make more than two visits to the property. If we first see the house alone or with our partner, days later we request a visit with the parents or in-laws, and later another visit with an architect or decorator friend, we are giving many clues about our great interest in the house.

Make a reasonable offer for the house

If you are clear that it is the home you are looking for, go to the offer and negotiation. Keep in mind that one thing is to negotiate, another to haggle and another to offend. If we want to get a better price, we must argue the reason for the reduction.

Our weapons will be the knowledge of the real estate market in the area, detect defects in the house, know if you need future works and reforms. It will also be easier to negotiate the price if the house does not have services such as an elevator, video intercom or concierge, or extras such as terraces or parking.

Have another purchase option in the bedroom?

Always having another purchase option before the seller will give us more security in the negotiation. We can be interested but not desperate for the purchase of the house. The seller will have the feeling that his home is not the only one on the market, so he may favor a price reduction.

Be clear if the home is what we are looking for at a reasonable price

If the home is exactly what we are looking for, meeting all our requirements, it is important to assess whether the price is reasonable enough so as not to lose the opportunity and risk losing it in a negotiation that can be very complicated.

Obtain as much information as possible from the seller

Undoubtedly, in the negotiation of the price of the house, the psychological factor plays an important role, and for this, having as much information as possible about the seller's needs will be a fundamental weapon in the negotiation.

Knowing if the house has been for sale a long time, knowing if you have had many offers and assessing the needs and urgency that the seller has in selling the house, is important to negotiate the price.

This will be especially important if we detect that the house has been put up for sale due to lack of liquidity of the owner, has a foreclosure or is an inheritance. In these cases, it is usually easier to get a reduction in the price. Through the simple note of the registry we can get a lot of information.

Demonstrate financial solvency

If we give the seller security in the operation, putting our financial solvency on the table to face the purchase, it can help to obtain a better price. If we have liquidity or have a pre-granted mortgage, the seller may prefer to lower the price of the house, insure its sale and avoid problems with other buyers who are not so solvent.

Be flexible with the delivery time of the house

In many situations, the seller will need to change houses in the event of selling it. To do this, you will have to square both situations: sell the house, buy or rent another and make a move. Therefore, we can have an advantage to negotiate if we give the seller the possibility to deliver the house within a reasonable time after the sale in exchange for a discount.

Be patient and agile in negotiation

If the seller has rejected the first offer on the house, we can still negotiate its price. Another new opportunity to make you an offer may come, especially if we show the seller that the initial sale price is too high. Therefore, if we like the house, we must not lose sight of it because its price may fall if it does not receive offers adjusted to its initial price. If this happens, we must be agile in the negotiation.

Whatever strategy we follow when negotiating a home price reduction, knowing how to negotiate wisely is essential. If you do not see yourself trained, it is always preferable to have the services of a trusted real estate agency to help you in this management.

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