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How Should You Negotiate & Agree Upon House Prices?

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  • Digital Team 

Negotiation is simple in context – you try to get a better price than the one being offered. Usually, that means a seller has to reduce their asking price a little, but remain as close to it as possible. A buyer will intend to reduce the price without causing offense and throwing the deal off entirely.

Now, there are a million techniques about “the art of the deal” or whatever other buzzphrase might be applicable, but really, it’s just about finding a price both are happy with. After all, the sale doesn’t have to happen if an agreement cannot be reached, and as conversation is free, there’s no real shame in negotiating.

Yet at the same time – how should you negotiate about the large purchases in life? For example, a house is often the most expensive asset any of us will own and manage, and so for that reason every shifted figure really does count. Perhaps the difference between a five thousand house offer could pay off all the administrative costs of moving.

So, are there good principles for negotiating a house? We’ll discuss that, from both the perspective of a seller and buyer.

Ensure Your Listing Is Perfect

It’s true that any negotiation is often best managed if you start from the strongest possible position. So, it’s worth making sure your listing is great, your house is neat and reading for viewings, and you’ve had an inspector check the entire home. With real estate photo editing, you can be sure to attract realistic prospective buyers. Don’t skimp on the details either – buyers want the full scoop on your home and to understand what they’re buying. It’s about flattering transparency.

Have A Set “Negotiating Budget” You Could Fall Or Rise To

Whether you’re the seller or the buyer, it’s wise to go into negotiations with a clear idea of your absolute maximum and minimum numbers you’re happy to accept. For sellers, that might mean calculating the lowest price you can realistically accept while still turning a decent profit. Some may even make their listing price a little higher than is realistic just to negotiate and “fall” to the price they wanted anyway, though this can deter the number of offers recieved. Buyers will want to factor in those closing costs and potential renovation expenses too. Just like setting how much you’re willing to lose in a casino before you head off, figuring out what would be acceptable to you can allow negotiation within parameters, and that means at the very least you’ll have a tolerable deal.

Justify Your Counter Offer, Don’t Just Throw Numbers

It’s easy to just throw numbers back and forth of course, but you may help the opposing party “see sense” if you’re clear about why you’re offering this much. Perhaps you compliment the house, put an offer in, but make it clear that the garden will need more landscaping and water runoff management to become functional again, which is why you’re offering ten thousand less than the original asking price. This can take the sting out of a smaller offer, and it also shows you’re not just trying to insult the person by saying their asking price is incorrect.

Of course, you don’t have to write an essay or apologize for the altered offer, as it’s quite clear you want to pay less for the house to begin with, and if it were free you would prefer that. There’s no deception you have to give here, but it’s just good form to explain your reasoning. You never know, maybe the other party will agree with you, and a heartfelt justification could have them accept an offer they may have rejected.

Sweeten The Deal With Side Benefits

As strange as it sounds, sometimes the negotiation price isn’t what causes an offer to be accepted or not. For example, if you’re buying a car, you might get a better deal if you pay cash there and then.

In terms of household buying, perhaps you’re able to move in within the next month, which is just what they need for their own schedule too. They may be willing to accept a reduced payment for that convenience. Or, as a seller, maybe you suggest a higher price but simply because it will come with all the contents of the garage and basement area, including some appliances you won’t remove from the household. Sometimes, a sweetened deal offers you more convenience and a better price.
With this advice, you’ll be certain to negotiate and agree on the best housing prices. Good luck!

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