5 Negotiation Tactics You Should Consider When Buying a Home
Buying a house is an exciting milestone in anybody’s life, but it does come with its fair share of drawbacks. One that bothers a lot of people is the need to negotiate the final price with the seller. Since most buyers aren’t negotiating experts, the idea of “winning the staredown” can seem a bit intimidating – particularly if you’re negotiating with a real estate agent.
Looking to increase the odds of your negotiation being successful? If so, here are five things you can do that will give you more leverage with the seller.
- Get a House Inspection
Before buying a house, it’s always a good idea to research your investment. The best way to do that is to schedule a professional home inspection. This will help identify potentially costly defects, giving you more leverage to negotiate a lower price. If you’re handy around the house and are willing to fix the issues yourself, this can be a great bargaining chip.
- Use Affirming Language
Using affirming language in negotiations can help make the other party feel heard. Consider using phrases like “I think we’re on the right track” and “You’ve done so much for us already.” Some types of affirming language can also make it seem like your ideas originated from the seller, which will get you to the closing table faster and with fewer challenges.
- Learn More About the Seller
You may be able to increase the amount of room for negotiation by finding out why the seller wants to move. If they’re starting a job in another state, for example, they’re likely looking for a quick sale, which means they might accept a lower offer. On the other hand, if they simply want to upgrade, they probably won’t be as motivated to move fast.
- Consider the Market
Whether the seller wants to get the sale done quickly or not, homes that sit on the market too long start to lose their appeal. In general, if a house doesn’t sell after 30 days, it’s officially been market-tested. At that point, sellers are more likely to make concessions regarding the price. After all, nobody enjoys strangers coming through their house all the time.
- Know When to Say No
Learning when to say “no” can be one of the hardest tactics in negotiations. If you and the seller aren’t in the same ballpark early on, walking away makes sense. If you’re still trying to lower the price, saying no is a risky but potentially lucrative play. It all comes down to reconciling the seller’s lowest selling price, your maximum purchasing price, and making a fair counteroffer.