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Negotiate Home Price

Negotiating to Buy a Home

Yes, you can negotiate home price! That asking price is just what it says. It is not the price that you have to pay to buy that home. So, negotiate the home price!

Make your first offer less than what you can afford to pay. Have your agent provide a list of comparable homes in that neighborhood that have sold over the last six months or year. Compare their sold prices with the list price of the house you want to buy. These sold prices will serve as a guide as to how much lower than the list price you can possibly pay.

Make a note of the number of days it took for these homes to sell. If the home you want to buy has been on the market for a longer time the list price may not be realistic and you may be able to make a deal for a lower price. Sellers can become somewhat desperate if they really have to move and their home has been on the market for a long time, say longer than 60 days.

Normally your real estate agent meets with the listing real estate agent and the sellers to present your offer. Your first offer may be accepted but probably not. The sellers can sign the offer back to you with some changes. This is called a signback or counter offer. A sign back or counter offer is a response in writing on the original offer by the other party signifying that they will accept your offer if you agree to the changes they have made to your offer.

Now You Are Ready to Negotiate Home Price!

Home Buying Tips Negotiating

You can negotiate all of the following and more:

1. Price

2. Closing date also known as the moving day.

3. Conditions such as financing, home inspection, ability to insure the home, seller holding a mortgage.

4. Deposit amount

5. Chattels and fixtures included or not included.

6. Other terms of agreement.

Offers can be signed back and forth between the buyer and the seller several times before a deal is reached. Be patient.

The price is the big item here so give it your attention. Do not be afraid to make small changes in the price you are offering. Your object is to find out how much, if any, the seller is willing to lower his asking price. The seller’s willingness to lower the price should be apparent on the first or second signback (counter offer).

Your real estate agent or lawyer can lead you through all the necessary signing and initialing required when making the offer and the subsequent sign-backs.If the seller refuses to sign back your offer, all is not lost, you have the option of making a new offer at any time.

The closing date can be negotiated if the buyers or sellers do not have a definite moving date. Some deals cannot be agreed upon because the closing date is immovable by the buyers or the sellers.

The conditions usually have to be satisfied before the end of five banking days. This means that you have to finalize the financing details with the lender or mortgage broker as well as have the home inspection done and any other conditions concluded by the end of those five days. These conditions are removed from the offer by the buyer signing a waiver that becomes part of the agreement of purchase and sale.

The deposit amount can vary depending on the price of the home and its location. It can be as low as $5000 and much higher. The deposit is usually paid upon acceptance of the offer. The deposit is held in trust by the listing real estate company or a lawyer. The deposit amount becomes part of the selling price on the day of closing also called moving day.

The chattels include things that are not fixed, bolted, nailed or otherwise permanently attached to the building. Stoves, refrigerators, clothes washers and dryers are examples. The built in dishwasher is not a chattel. But it is usually listed in the offer as being included.

If in doubt about some item being included write it into the offer.Possible rental items such as the hot water tank, water softener, other appliances and even the furnace should be noted in the offer.Usually any rental agreements for appliances like the hot water heater or even a furnace with the seller is transferred to the buyer.

Do not hesitate to include in your offer, items that are in the house that you want but are not included in the listing. If you don’t ask you won’t get!

Other terms of the Agreement of Purchase and Sale can include further visits to the property by the buyers before the closing date, a statement by the seller that the appliances included in the deal will be in good working order on the closing date, statements by the seller that the property has not been used as a grow house for illegal substances.

Read the page explaining the Agreement of Purchase and Sale.

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