According to NAR, some of the most recent real estate statistics have revealed that 23% of home sellers reported reducing the asking price of their homes at least once. While the cost of selling a house, such as real estate fees or getting a home in show-ready condition can be pricey, when sellers are motivated to move, it can make it much easier to negotiate.
Do Your Research To Find Out If There’s Room For Negotiation
Before you negotiate, you’ll need to arm yourself with knowledge. Do some research on the area to determine what the current state of the local housing market is. Pay particular attention to properties that have recently sold and are similar to what you’re looking for. Of course, the more desirable the area is, the more difficult it can be to negotiate a lower price, but it can still be possible. If the seller needs to move soon or the property has been on the market for a while, it’s well-worth pursuing.
Don’t Get Too Excited Or Emotionally Attached
If you let yourself get emotionally attached and show your excitement to the seller, you’ve given them the upper hand. It’s much better to play hard to get – of course, that doesn’t mean being rude, just try to hold back from appearing too enthusiastic. If there are any obvious drawbacks that aren’t deal-breakers, perhaps a dated bathroom or small kitchen, point them out, suggesting that your offer will have to consider that.
Present Yourself As A Good Option To The Seller’s Realtor
Remember that the seller’s real estate agent is working on behalf of the seller, so it’s also important to avoid letting your desire for the house show to the realtor too, and you never want to tell them what the upper limits of your budget are either for obvious reasons. Let the agent know that you’re ready to buy and have easy access to the deposit and a mortgage loan already pre-approved. As the agent wants to close the deal within a reasonable period of time, they’ll be more likely to suggest you as the best option to the seller even if your offer is lower than what they were hoping for. Don’t make an offer that’s unrealistically low, however, as the agent is likely to start questioning how serious you really are.
Write A Letter With Your Offer
By writing a letter with your offer, and even better, accompanying it with proof of your home loan offer, you’re going to stand out from the rest as both real estate agents and sellers appreciate this. It indicates that if they accept the offer, the deal is more likely to go through creating much less hassle and a smoother transition.
Don’t Give Up If Your First Offer Is Refused
First offers are frequently refused but it’s often just the beginning of the conversation. The seller probably wants to find out if they can push you to a higher price. In a quiet market, more than likely they’ll come back to you later. Even if they don’t, keep a close eye on the property to see if it stays on the market, if so, they may be more willing to accept the offer at a later date.