You’re ready to take the plunge on buying a house. You have the perfect place chosen and you’re about to take the next, and arguably the most important step, negotiations to actually buy the house. Here’s the question... how the hell do you 1. Negotiate or 2. Negotiate something as big, expensive, and important as a house?
First, know the conditions under which you are buying the house. If at all possible get to know the seller. If you can’t get to know the seller themselves ask the listing agent, get as much information as you can. Why are they selling the house? When do they want to be out of the house? Does the seller already have a new place? It’s super important to figure out the level of urgency involved for the seller. You’re not here to make friends your here to put together strategy. The more you know the more you can tailor your offer.
Next, develop your game plan. What is your game plan? If you paid attention to the first step you’ve already started your research. Make sure you ask your realtor if the asking price is fair and what wiggle room there might be in the price. I’m assuming you’ve seen the house, you know what you’re working with. You know what the property has that you want and the things that you’re missing and thus, what you’re budget will accommodate. You need to be realistic about what you’re going to pay for the house. Be prepared to sell yourself. In business deals, you need to prepare to do a little bit of acting. You also need to be prepared to read people. How does the seller feel about selling the house? You need to be able to read that attitude and show the right amount of enthusiasm. Not so much that the seller thinks you’re overeager and try to drive up the price but not so stoically business like that an emotional seller will think that you don’t appreciate their home enough and be reluctant to sell it to you.
Finally, the best thing you can do for yourself is to stay flexible and prepare to compromise. Compromise is an intrinsic part of the negotiation and if you think your going to go in and bulldoze and bully everyone else in the room into giving you everything exactly the way you want it for the price you want it at with zero concessions from you, then you’re unreasonable and insane and your walking away with hurt feelings, a bruised ego, and broken dreams. Be prepared to be creative. The seller might be really attached to the price that they want to sell the house for so you might want to just... work around that. There are other ways to get your money's worth without getting the seller to lower the price. In short, if they don’t want to change the price, change what you get for the price. As the buyer, you can kind of negotiate for anything. I mean don’t get crazy but you can legit ask them to leave you furniture because you like it, ask for certain repairs, some specific landscaping alterations. You can ask for a lot of things within reason.
With these tips in mind and a good realtor, you are well on your way into your new house. Now you just need to tackle the steps that come after. Like signing the contract, inspections, getting various kinds of insurance, doing paperwork you didn’t even know existed, etc. You can check out some of our other articles on home buying for more advise and tricks for home buying and the home buying process.