buying home

5 Tips for Negotiating When Buying a House

Houses are the most expensive thing most people buy, with their value commonly sitting in the hundreds of thousands.  Although you should never try to buy a home you can’t afford, it’s a good idea to try still to talk the price down.  The less you spend, the less interest you’ll have to pay, and the less of a monthly drain a mortgage will be on your finances.

Here are the top ways to negotiate that price down!

Consider The Market You’re In

Negotiating a lower price is easier if you’re in a buyers’ market.  These markets are when many houses are on the market, with sellers desperate to get rid of them as quickly as possible.  In these markets, you can talk prices down by dozens of thousands at a time.  Don’t be afraid to ask for a far lower price than you’d expect to pay, and see how much they bargain with you.  

Comb Over the History of the Property

Sometimes you can find the largest issues by looking at the history of the property.  If it’s an older home, look at dips in the price that show up on house selling sites or sites that track the property tax value of the home. Drops like this could mean it flooded, had damage from a large storm, or that something happened inside of the house.  Research the area during these times, and look at what could be causing the price dip.  If it’s flooded and they didn’t tell you, or you find a crime was committed there, talk to them about this and make it clear you’ll need a price drop before you’d buy.

Look Carefully at the Inspection Information

Inspections can bring a lot of drama to a deal.  You’re paying a professional one to two hundred dollars to go over the home and decide if it’s safe: so pay close attention to the information that they give you.  If there’s an issue and the pipes need to be replaced, or the roof is within its last five years, you can use these as negotiation pieces.  These could be more impactful if they failed to disclose important information to you.  Please don’t be rude about these items, but make it clear you expect them to be covered.

Consider Asking them to Cover Closing Costs.

Closing costs can quickly add up, and although most lenders these days will include it in your loan: if you can have the sellers take it off of the price, you’d be able to save six to ten percent of the cost of the home!  Although they’ll have to deal with their own seller closing costs calculator, you can make it clear that covering your closing costs will make you more likely to buy.  

Ask if They’ll Throw In Items You Want

If the price is too high for you because you know you’ll have to put money into furnishing your home: then ask for them to include some of the furniture in the sale.  Tell them which items you want, and see if they’ll negotiate with you.  This can save them money they’d have to spend moving and save you money since you won’t have to buy more furniture.  You can still save money on the price of the home, but this can be a great perk too.