Purchase price: Can you negotiate it? How?

If you have finally found your dream home in one of the SE Calgary communities, but the price seems to be a bit over the top or simply over your budget, is there a chance to lower the price? Probably there is, especially if the market conditions go in your favor and the home has received just a few offers.  Either way, it is worth a shot, especially if you cannot pay the full price, so take a look at these unwritten rules that can help you get the home you want for a somewhat lower price, but remember, you will always have to make sure your offer remains decent and  close to the asking price.

Rule No 1: Don’t Let It Show How Much The Home Has Grown On You
Revealing how much you love a home will make the seller think you are willing to pay what it takes just to get their home. That’s why it is important to keep your emotions under control. You can show that you like some features, but never make it look like you are desperate to get the home. Play it cool and you will open the door to a negotiation.

Never Reveal Right Away How Much You Are Really Willing To Pay
It’s an unwritten rule not to let the seller know how much money you actually have at your disposal. They will think you have more and push for a higher price, so it’s best to start with a somewhat lower offer, and when/if they make a counteroffer, you will be able to match it. What’s important to remember is to avoid lowballing at all costs, as you don’t want to offend the seller. Your negotiation terms have to be reasonable, which means your offer has to be close to the home’s actual market value.

You Need To Know When You Come Across An Overpriced Home
Both, buyers and sellers often fail to take into account the stats and current market trends and rather rely on their gut feeling. As a buyer, without a deep understanding of the market, you won’t be able to assess the home’s real value and you may end up buying an overpriced home. The best way to dodge this bullet is to hire a Realtor who knows the market and the average prices for all homes in the area you are interested in. Plus, a Realtor can help you with the negotiations as they are trained professionals and know how to persuade a seller to lower the price.

Show You Are Serious
The seller needs to know that you are a serious buyer who has the means to buy a home. To prove that, make sure you have a mortgage pre-approval  to back you up.  The seller will certainly appreciate the gesture and put you on their short list. Coming prepared can give you a huge advantage over someone who comes unprepared. Sellers also usually want to leave their home to someone who will take care of it, someone who loves it just as they do, so establishing an emotional connection with the seller can help you out too when it comes to landing a home at a reduced price. 

For more info on buying and selling in SE Calgary, feel free to contact me.

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