Negotiating the price of the house you intend to buy is quite a tedious process, but very rewarding if done the right way. In fact, you could actually save a few thousands of dollars on the final price if you are able to negotiate in a fair but firm manner. There are few methods that you should adopt so that you are able to get a good deal; something which is fair on the buyer’s as well the seller’s part. Negotiating is normally done at two points, one is the loan which you negotiate with the bank or lender, and the second is the price of the house, which you negotiate with the seller.
As far as negotiating the house price is concerned, the most critical phase of negotiating comes after the inspection. Even though you would have made an initial offer before even inspecting the house, it is after inspection that you actually come to realize if there are indeed any defects in the property and whether the price that you have offered is worth it. A few important steps that can help you negotiate the right way are included below. As a first step, ensure that you always offer a lesser price than what you have in mind as an initial offer. This gives you a margin to increase the amount in case the seller does not evince interest in the initial offer. Secondly always make sure that you inspect enough properties that are similar to the one you have short listed. Compare the condition of these houses along with the prices that are on offer. This gives you a fair idea as to what exactly the market rate for such a home would be.
After you have inspected the house of your choice, the actual negotiation starts. Here you have an idea about the condition of the house as far the structure and amenities are concerned. Ensure that you ask an authorized inspector to carry out an inspection and carry the report that the inspector has submitted. While negotiating, ask for more than what is actually required. In case there are several points to be rectified as far as the condition of the house is concerned, it is easier for you to lead the negotiation as you could end up conceding a few not so important points to the seller, so that the seller also feels that the final amount is justified. Finally, make sure that you are aware of the market rates as well as the time frame for which the house has been on the listing. This gives you a fair idea about the situation of the property as well as the seller, and you could negotiate accordingly. Negotiating is an art that you can always learn more about. There are various literature on this subject that could be of immense help.