Buying a house is a long and complicated process. However, there are some tips to help you as you look at houses, to help negotiate a more reasonable price.
Check the Area
When you find a home you like, don’t just assume to asking price is standard for that area. Use online home estimators to compare the prices. This allows you to see how much similar houses are selling for in the area. You can use this during your negotiations to show that even though the seller is asking for $300,000, comparable homes in the area are actually going for $250,000.
Hide Your Cards
Don’t tell the seller everything about yourself, such as why and how you’re buying the house. This provides ammunition they can use to avoid lowering the price of the house. For example, if the house is your dream home, and you tell the seller that fact, they are less inclined to lower the price because they suspect you’ll be willing to overpay for it. Similarly, if you are going to pay cash, don’t tell the seller. Knowing you have that much cash implies you can afford and are more willing to overpay.
Understand the Seller
While you don’t want to share information about yourself, you do want to get as much information from the seller as possible. Find out why they are selling their home and what their situation is. If you learn that the seller already purchased another house and is now making two mortgage payments, you can use that to your advantage and insist on a lower price during negotiations. The seller might not come right out and tell their situation, but you can look for clues. For example, no furniture in the house is a good idea that the seller wants the house gone fast.
Check for Necessary Repairs
Don’t take the house at face value. You have to inspect and look for any necessary repairs because they will also cost you money. If you are unable to look for any signs of damage, consider hiring someone. Don’t forget to also look for signs of pest infestation. Contact pest control, such as Ted the Terminator Inc. and Ant Control Vancouver to check for signs. If you do find signs of repair, try to use those to negotiate a lower price, explaining you’ll have to pay to get those fixed.
Get the Seller to Pay Closing Costs
When compared to the price of the house, closing costs aren’t that expensive, but they are another burden to add, especially since you usually have to pay them up front. Consider asking the seller to pay the closing costs. Especially if they are in a hurry to sell the house, they may be so happy to have made the sell that they easily agree to pay the closing costs.
Buying a house is a costly decision, but don’t just accept the asking price. Use these tools to negotiate a lower price, so you can get the house of your dreams without breaking your bank account.