How to negotiate the price of a house?
Are you in the process of buying a home or are you thinking of buying one? We help you with one of the most difficult topics: how to negotiate the price.
Knowing how to negotiate the purchase price of a home is possibly one of the most difficult phases in the entire process. Knowing what we want and what the seller intends can be key at the time of purchase. So, if you want to get a discount on the price, it is best that you follow these tips.
Do a market study before negotiating
If you already know where you would like to live and the house you are interested in, carry out an exhaustive study of the area to find out how you should negotiate. The objective is:
- Compare properties with similar characteristics to see if it is at market price. If it is higher, you will have the possibility of negotiating with ease.
- See the state of habitability of the house. If it is to be reformed or in poor condition, you can justify a good price reduction.
- Access the certificate from the Technical Building Inspection and, if possible, talk to some neighbors to assess whether the building needs maintenance. This implies that there will be spills in the future, therefore, if the owner does not sell the house, he will have to face them.
- Account for the absence of relevant extras such as garage or pantry.
- Request the Energy Efficiency Certificate. If the property consumes a lot of energy, its sale price should be lower.
Find out the real price of that home on the market
Many owners put a asking price higher than the real price of the house to have a margin to negotiate. So carry out an exhaustive market study of the area and of similar homes to find out what room for maneuver you have.
Find out how long the house has been for sale
The first thing you should know is how long it takes to sell an average house in the Autonomous Community in which you want to buy. Second, find out how long the property has been for sale. If it takes longer than it usually takes to sell, you will have a solid argument in the negotiation.
Check the loads
It is very important to request the simple note in the Land Registry, so you will get relevant information such as:
- The mortgage status of the home.
- Unpaid taxes.
- The state of embargo.
Find out the reasons for the sale
It is important to know the reason why the house is being sold. It’s easier to get a discount if the owner is in a hurry to sell.
It’s not about haggling
To negotiate the price you have to give the seller compelling arguments. If you do it intelligently and perceptively, justifying each reason, you will surely win over the seller.
The key points are the following:
- The house is markedly above market price.
- The seller is in a situation that forces him to sell.
- The dwelling has high charges or debts.
- The obvious forecast that spills will have to be dealt with soon.
- The property has a deficient energy certification.
- It needs a reform.
Prove your solvency
When negotiating a final offer, it is essential to demonstrate your financial solvency. Remember that when negotiating the price of a house, any owner will prefer to sell his house to someone solvent, before waiting for another buyer and seeing that he has a worse economic situation.
Play with the psychological factor
It would be the final touch after an arduous negotiation. You must sound convincing when you tell the salesperson that you are the ideal candidate. Prove your solvency, show that your mortgage application has already been approved by your bank, deposit the deposit…
The owner will see in you a trustworthy person, worthy of deserving the house that he has put up for sale.
Do you need help negotiating?
As you have seen, negotiating the price of a home is a very complex issue. You have to know the real estate market well and the points to discuss with the seller, so if you are not ready to negotiate and need help, contact us, we are experts in real estate purchases and in negotiating the final price.