Monday, March 17, 2014
When it comes to buying property, the most significant factor that makes or breaks a purchase is the selling price. Every home buyer is looking for a good and fair deal. Here's how to negotiate a good price on a house.
1. Research similar, recently sold properties in the area
Comparable properties in the same neighborhood have roughly the same land area, floor area, property condition and amenities such as swimming pools or gyms. Compare the selling price of these homes with the property you’re looking at. Is the price higher or lower, and by how much? This will give you a better idea of running prices.
2. Look at similar properties that are not selling on the market
If a comparable property has been on the market for several months without any buyers, it may be overpriced. If the price of the property you’re eyeing is the same or even more expensive, it may also be overpriced. This provides valuable information as to whether you need to negotiate for a lower price.
3. Negotiate the price
Whether the potential property already has a good price or not, it’s always wise to negotiate further, after all, you can’t get a better price without asking. Sellers also typically price homes higher, since they expect buyers to negotiate as well. After gathering the information on running prices of comparable homes, you may negotiate the potential property’s price down to a fair market price.
4. Consider closing costs and agent fees
If the property seller is not selling through a real estate agent, you may use this to your advantage. Real estate agents usually charge a commission of three to five percent. In this case, the owner may be willing to settle for a lower price than that of comparable homes. Try negotiating the closing costs as well. While there are common practices on who shoulders the closing costs, you may still try negotiating that all the costs be shouldered by the seller.