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Home Buying: Four Ways to Negotiate the Asking Price of a Residential Property




“House hunting is easy. It is the catching it part that is difficult”-Susan Gale

Finding your dream home can be difficult and just a tad bit exhausting. Indeed, it is no easy feat insomuch that when you do finally find it, you would want to secure it almost immediately.
Unfortunately, your dream home comes at a price—an exorbitant one to be precise, so is a savvy homebuyer like you to do? You negotiate of course! After all, as a savvy homebuyer, you should know how to crunch the numbers and have an approximate amount of what they can offer for their dream house. In this regard, you should know when to negotiate the asking price as just because it is your dream home does not mean you should be sinking an exorbitant amount of money into it. In this regard, finding the right agent is crucial as he or she would be able to secure the right price for you.
With a seasoned professional by your side coupled with intelligent tactics and strategies, that property that is just slight above what you can realistically afford could potentially be yours—whether that may be a unit in Avida Towers Cebu or elsewhere. In any case, here are some of the ways to negotiate the best deal when buying real estate property:

1   

          Research the market


Before even thinking of pitching an offer to negotiate, you need to know the property’s current market first. After all, you cannot realistically work out how much a property would be worth if you have not even done your research. Take a tour in the area and inspect similar properties to see how they compare to one another. Have an idea of how much the similar properties sold for and how fast in the past few months. Doing all these would give you a close approximate of the property’s true value which would strengthen your bargaining power by the time you come around to negotiating with the seller.

        Find the right broker


Back in the day, a broker’s job is to find you the best property possible. However, seeing as the internet is rife with online marketplaces and property listings, their role in finding you the perfect property has been somewhat diminished. As a result, their strongest expertise should be to work with you to come up with the strongest and best possible offer for your home. In this regard, your agent should serve as your negotiation advisor which means that interviewing potential agents about their experience is paramount in this endeavor. Before working with an agent, ask about their process, approach and tactics when it comes to negotiating and determine whether you can work well with them.

      Know how to deal with real estate agents


Keep in mind that a real estate agent is primarily working for the vendor which means the terms of which a property would sell should be in favor to the vendor. Although it can be beneficial to both, know that a real estate agent’s job is to get the best deal for the seller insomuch that they would try to get you to increase your offer. However, hold your ground and do not feel pressured into offering more than what you can realistically afford or are comfortable with. Furthermore, you should avoid from disclosing too much when it comes to your budget. Similarly, do not be too overenthusiastic about the property they are selling. You are encouraged to be upfront and open with the agent however. Be concise about your terms and communicate clearly. Make yourself easy to deal with as possible without being too much of a pushover. Review the terms first and then make sure that all offers are in writing. Doing so significantly increases your chances of having your offer considered alongside multiple other offers.

      Remember to stick to your budget


Sometimes, when we find the home of our dreams, we tend to throw logic out of the window just to secure it. However, keep in mind that even in buying the property we want, we should be rational in our approach. In this regard, it is best to sit down with a financial planner and an accountant to work out your budget before you even start house hunting. Similarly, it would bode you well if you have a clear understanding what your borrowing capacity is. Once you have an approximate of what your budget is, stick to that limit regardless of what pressures you face and even if it means losing out to other buyers on your dream property. If you cannot afford it and your offer was rejected, walk away and know that another property will come at an ideal price soon. When you are negotiating with the seller, it is a good idea to make your first offer less than your maximum limit so that you have room if the seller wishes you to increase your offer. Apart from that, it could potentially save you a significant amount of money as well. Be sure never to offer an amount lower than the asking price as this will insult the seller and make them less receptive to considering any future offers you might make.

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