It's rare for homes to be sold at the price on the real estate listing. Buyers will either need to pay more to outbid other buyers in a competitive real estate market or offer to pay less to get a home with little interest off the market. Here are some tips that can help you with negotiation when looking to buy property.
Don't Be Afraid To Make A Low Offer
Once you list a price on a home, there is no going back and offering a lower price. The biggest risk of making a low offer is that the seller will decline and counter at a higher price. It's rare that a seller will counter offer at a price that is higher than their list price, so there is essentially no harm in making a low offer to see what happens.
Perform A Comparative Market Analysis
Your real estate agent can help you perform a comparative market analysis of the home you are interested in to find out what is a fair offer. They will look at similar homes in the area that have sold within the past few years, which give you an idea of what the market price is. You can present this information to the seller along with your offer, which may help convince them that your offer is the right and that their list price is too high.
Use Public Records to Your Advantage
Another way a real estate agent can help you is to pull public records about the home that you want. This can help give you an idea about why the owner of the home is selling, and if it will affect what kind of offer they will accept. For example, you may discover that the home is being sold for much less than what it was purchased for, if the home is under foreclosure, if the seller is divorced, or if the seller has already purchased a new home.
Realize There Is Room For Negotiation later
You will agree on an initial sale price for the house, but there will be room to negotiate later on. Once you have the home inspection done, you can counter with additional demands that will give you a better deal. Some of this negotiation may not result in a lower sale price on the home but could instead result in getting money as a credit towards your closing costs. For example, if you discover that there is a problem that needs to be repaired, that money can be given at closing to make up for the cost you'll eventually have to pay.