Let’s say you’re purchasing a new property – congratulations! But as you will know, of course, buying a house is not like walking into a store and picking up a pack of crisps. It’s a significant purchase, and one with a lengthy and complex process, and most importantly, it’s an expensive one. That’s quite a chunk of money you’re about to drop and that’s why the price is not set in stone.
When it comes to purchasing homes, it’s a give-and-take, and the price should satisfy both the buyer and the seller. That’s why it’s a negotiation; they ask for a price, or you put in an offer, and the other side has the option to counter. Rarely does anyone ever take the asking price; you need to go in with your negotiation tactics ready, and luckily, that’s exactly what this guide is going to talk about.
Don’t show that you love it
Negotiating the purchase of new homes can be a bit like poker, in that you can’t allow the other side to “read” you at all. You can’t show emotion, whether good or bad. You must remain as neutral as possible and keep them guessing; this gives you all the power. The moment they can sense that you’re in love with the property, your position is weakened, because they know they have something you want and thus, that they can hold out so that you’ll be willing to pay more.
If you remain objective and unemotional, they won’t be able to use your preferences against you in order to undercut you. Sure, it’s a beautiful house; but it would be even more beautiful if the price were a little lower. And it can be! Just keep that poker face on.
Compare the property to other similar ones on the market
Before you enter a negotiation like this, you need to do your homework. Know all about the property, but also about the properties around it, and the properties like it. What are they going for? How quickly are they selling? What is their most popular feature?
All of this information is valuable and useful, because not only does it help you develop an informed opinion, but it also enables you to use it during your negotiation. They can’t ask for much more than what the other houses are selling for, and you need to point that out. If other houses like it are proving to be hard to sell, introduce that into the discussion, as well. You need to show that you know exactly what’s going on.
Keep in mind what the faults are – and use them
No matter how much you love this house, it’s bound to have its faults. Maybe it’s a little older than you would have liked. Maybe the school district isn’t excellent. Perhaps it’s missing some features or it needs work done, things replaced, etc. Whatever it is, this is the time to bring it up. You love the home and you’d buy it anyway, but they don’t know that. You need to use whatever you can to get them to lower the price.
The backyard is great, but what about that roof? It’s going to need to be replaced, which is going to cost you in time, money, and discomfort, so the price should reflect that. It also needs to take into account the fact that it’s smaller than what you had been looking for, and that it doesn’t have a dedicated laundry room. All the little nitpicky details are ammunition you need to bring the price down and make them think that you will, perhaps, walk away.
As you can see, negotiating for a house is no walk in the park; it’s serious business. When you buy something this expensive and this permanent, you can’t walk in unprepared. You’ve got to know what you’re doing, do your homework, and be ready to counter. You can have all the power in a negotiation if you take the time to take a look at other properties, at the house market, and be aware of the shortcomings of the property you are looking to purchase – and how to use them to your advantage.