Negotiating the price for your new home doesn't have to be a stressful experience. Anyone can be a successful negotiator if a few simple things are kept in mind.
First, remember, an informed buyer is a confident one. Negotiations may be like snowflakes, no two are the same, but one thing that's helpful in every negotiation is information. Below is a list of questions that will allow you to become well informed heading into negotiations.
First, remember, an informed buyer is a confident one. Negotiations may be like snowflakes, no two are the same, but one thing that's helpful in every negotiation is information. Below is a list of questions that will allow you to become well informed heading into negotiations.
- How long has the property been on the market?
Usually, the longer the property has been on the market, the more likely the seller will be to negotiate. - Has the price been reduced during the listing period?
If there have been any reductions, especially large ones, in relation to the overall price, then the seller will again be more apt to negotiate. - Have there been any other offers on the property?
It's good to know what offers are being considered and what offers have been turned down and why. - Why is the seller selling?
It is always good to know a person's motivation when negotiating. This will help you in choosing what offer to make. - What all will you be buying?
Is the seller leaving anything else behind? Furniture or equipment, washer, dryer, etc. This should all be taken into consideration when making an offer. - What is the price range of properties that have been sold in the area?
This will give you a good idea of what the market is like in the area. - How long do properties stay on the market in the area?
This average will let you know how heavy the competition is you may be facing. - What is the list-to-sale price ratio in this area?
A good way to find out the sellers' past willingness to negotiate and how much or how little they may be willing to bend. - What is the average price per square foot of recent sales in the area?
Now you will know how the house stacks up against others in the area, without worrying about size. It puts all houses on the same level. - What other factors may affect the property value of the house or neighborhood?
Crime, flood plains, natural disasters, termites, in other words find out the history of the house and area.
