Buying a home in a competitive market is already messy, but that’s nothing when it comes to the work of negotiating. So if you want to lower the home price and aren’t sure where to start: here are the top ways to drop that total!
What can you Afford
Simply put, but what can you afford? Before you should even consider looking or comparing house prices, take a look at a home affordability calculator such as those from SoFi and similar websites. This is a great financial tools which can set you up for when you are ready to look for your perfect home. Most of the online ‘house-calculators’ are also really simply to use.
Seek out homes that are about the same size, style, and age. If they’ve sold recently, that’s even better! Compare them to the home you’re trying to buy, and see if it stacks up. If not, bring that up to the seller! Let them know that you’ve looked at comparable prices, and you feel like their price is above what you’re willing to pay. There are ways to say this politely; don’t get in a fight, or negotiations will end.
Let the seller know that you know about any issues in the property. Whether that means you heard something scuttling around in the attic or your inspection brought up a problem with the electrical system: let them know. It would help if you had prices laid out by professionals on how much it will cost to change your bid accordingly. It’s okay to be flexible with this, but don’t allow yourself to get taken advantage of!
Although you might be tempted to go for your goal price because you assume they won’t go lower: they might! So give them a lower offer, and see how they react to it. They bite, or they may push back with a higher retort: but you won’t know unless you try! If you skip this step, you could be paying tens of thousands of dollars more than you could have gotten away with! No house payment calculator is going to be able to take off those monthly costs!
If they seem flexible, and you’re in a buyers’ market: try to get them to cover closing costs. This is a nice little perk that means you won’t have to be responsible for the cost of your agent or realtor or any other expenses! Even if they say no, they’ll often respond to this slightly lower price for the house. You can turn that around and get a great deal! If you can get them to cover closing costs, that’s a few thousand off of what you’d owe up front and is more than worth the discomfort of negotiating.
Your realtor or real estate agent is there to help! This is their job! You have to let them do it by having them help you with negotiations, even if that means that you text each other back and forth while deciding on a plan of action, don’t put their skills to waste. Instead, have them walk you through each bid and ask for their help on anything you find confusing. For example, they may ask you to bid lower or tell you to ask for more: and listen to them! They know what they’re doing, and they have your best interest at heart.
Thanks for reading xxx
Hi and welcome to The Willow Tree. I’m Michelle, also known as Shel and I am a mama to three beautiful crazy kids – I have two handsome boys and a wild and wonderful girl.
I really wanted a concrete place to share my love for travel, in particular Disney and offer my readers a chance to gain some knowledge around what we love to do as a family of 5.
I share our family adventures which include days out, travel advice and tips, holiday reviews, restaurant visits and of course, our love for Disney, including Disneyland Paris and Walt Disney World.
Life is about creating memories, and here we are sharing them with you