Negotiating the selling price of a home is part of the process, and a great way to help you as the buyer get the best deal possible. Simply throwing numbers out may not be enough to budge a seller, but certain techniques can. Here are 3 things you can do to lower the asking price on a home you desire so you can stick closer to your budget.
Remove add-ons from the sale
If a home is being sold with add-ons, such as a boat or portable canopy, then request to have these items removed as part of the sale. Sometimes homeowners will leave perks added onto their homes to make them more attractive to buyers, but the buyer actually ends up paying for the add-ons in the asking price. Let the homeowner know you are interested in the home but not the custom-made shed or hot tub, and they may agree to lower the asking price and sell these perks elsewhere for profit.
Point out flaws that need fixing
Perceived flaws in homes for sale, such as a dated kitchen, peeling exterior paint, or even an unfinished basement can turn off many buyers and leave a seller wondering how they are going to get the profit they desire. If you are interested in a home but don't care much for the single-paned windows or the wallpapered interior, point out these flaws to the seller and tell them you will pay the asking price after they fix the things you don't like. The seller will be most likely to respond with a lower offer since it's cheaper to sell the home at a lower rate than it is to invest in upgrades they won't ultimately get a return on.
Express interest in other homes
Don't let the seller know that their house is the only one you are interested in, even if it is. The pressure of competition can make a seller feel the urgency to accept or at least consider reasonable offers against their asking price, especially in a buyer's market. Print out the details of similar homes in your dream home's area so you can compare the home you want with the square footage as well as the asking price of its competitors so you can make an offer with an educated reasoning behind it. Your seller will be more likely to come closer to the amount you are willing to pay when they see how their home is working out among their competitors.
Welcome to my website. My name is Larry Silva, and I want to talk a bit about private mortgage insurance. You may have heard the term PMI mentioned when you were in the process of purchasing real estate. When I first heard my lender talking about PMI, I was very confused. It was my realtor who sat me down and explained what private mortgage insurance was and when someone is required to purchase it. He told me that PMI is not lifelong insurance; it can be cancelled when the mortgage principal balance reaches a certain point. Once it was explained to me, private mortgage insurance was no longer a mystery or a confusing concept. I would like to pass on what I learned and hope that you find it to be of value.