How Much Can You Negotiate on a

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HOW MUCH CAN YOU NEGOTIATE ON A HOUSE, REALLY?

If you have finally found the right home for you and you’re ready to make an offer. You’re probably wondering if the seller would simply take the offer, and everything would be concluded.

However, it doesn’t always work precisely like that, and the seller might come up with a counteroffer of their own, which kick-starts the negotiation process.

Sometimes it isn’t about having a professional real estate agent; negotiation is stressful and knowing the right price to negotiate is a tricky part of buying a home. You also need to be very aware of the different points that can help sway negotiations in your favor. How much can one really negotiate on a house? We’ve broken down the answer to that question for you in this article; read on to find answers.

WHAT DETERMINE THE RIGHT PRICE TO NEGOTIATE?

There is only one major factor that determines the price of a house, and that is the present condition of the housing market. The situation of the housing market is what affects how your offer goes down with the seller; it influences whether the transaction would be successful or if you need to start considering other options. A professional real estate agent can effectively assist you in understanding the market and making you a better negotiator.

THE RIGHT NEGOTIATION PRICE IN A BUYER’S MARKET

If it’s a buyer’s market, there are more houses than buyers available, which gives the buyer an upperhand because there are many options to choose from, and sellers would be eager to sell off their homes to any buyer they can get. You can even get the seller to sell at least 10% below the original price asked for in such markets. You also have the chance to renegotiate paying closing costs and other parts of the house. Sellers are usually eager

THE RIGHT NEGOTIATION PRICE IN A SELLER’S MARKET

A seller’s market is actually a market where there are far more buyers than houses; this is not favorable to homebuyers because there’s always someone prepared to make a better offer than you. Buyers need to be careful during a seller’s market because they can easily be rejected by the seller. Ensure the offer you make in this period is simple and try not to drag the negotiation process. You’re allowed to still negotiate simple contingencies like financing, inspection, and others but bear in mind that there are buyers who won’t request for this. In a seller’s market, buyers need to make a decision and stick to asking for only the essential things. Luckily, you’ll have your real estate agent besides you guiding you through the entire process.

THE RIGHT NEGOTIATION PRICE IN A BALANCED MARKET

In this market, supply and demand are equal, which means there are just enough houses to cater to the available buyers. This doesn’t mean negotiation gets easier in a balanced market; the sellers usually spend a lot of time going through the different offers, and this means that negotiations could drag on for a very long time. Nobody is in a hurry in a balanced market, which could work against you if you’re not careful. If no one is in a hurry to buy or to sell off their property, they don’t see the need to rush up negotiation. Try and start with a price below the stipulated price and include other contingencies in this price because other buyers would also be doing this. If you’re, however, interested in buying immediately, make a fair offer, and get it settled quickly.

Reference

https://www.redfin.com/blog/how-much-can-you-negotiateon-a-house/