Hi everyone,
I am in the process of buying a House and I want to negotiate a lower price. What are some effective strategies or tips for getting the seller to agree to a lower offer?
Hi everyone,
I am in the process of buying a House and I want to negotiate a lower price. What are some effective strategies or tips for getting the seller to agree to a lower offer?
There are no hard and fast rules to negotiating as every scenario is different. Get that 20% discount out of your head - not useful here. This would be my approach…
Step 1: What do you think the property is worth?
Step 2: What is the most you are willing to pay for the property?
Step 3: Use the comparison properties needed to answer Step 1 to show your neighbor what you feel the property is worth (most easily shown as $/square foot to make it easy to compare properties of different sizes in the neighborhood) and submit an offer AT THAT PRICE subtracting a reasonable amount to account for the transaction costs saved by listing FSBO. This will demonstrate an attempt at good-faith negotiations assuming you clearly explain your logic.
Step 4: Just calmly go back and forth as necessary until you reach the $ amount defined in Step 2. If they won’t budge, thank them, wish them luck, and walk away.
If the answer to Step 2 is less than the answer to Step 1 - there’s no shot you’re making a deal on this property.