Looking for a property, you fell for a house but you think that the price asked by the owner is too high? Discover our tips for negotiating the price of a house in order to lower the price. Everything you need to know about the art of negotiation in the real estate sector.
Precisely determine your home purchase budget
Before starting a negotiation on the selling price of a property, you need to know your budget precisely. Financing capacity is calculated on the basis of criteria such as personal contribution, professional situation (type of contract and amount of income), purchasing power, repayment period, etc.
To start, you can use the online simulation. But the ideal is to make an appointment with your bank advisor to get a clear idea of the amount you can invest. Note that you can also call on a bank broker to carry out the procedures for you.
On the other hand, there are costs to be expected such as notary fees which correspond to approximately 8% of the sale price. Also take into account the cost of the move and that of the work, if necessary.
Finally, also include agency fees, if any. If they are already included in the sale price, the advertisement then mentions “FAI sale price”, that is to say without agency fees included.
Find out about the local market to start a negotiation
Before negotiating the price of a house, it is important to know the local market. Indeed, it would make little sense to want to lower the selling price of a house without having an idea of the average price at which similar properties are selling.
To find out about the price of real estate per square meter in the town or district, ask the real estate agents in the area. You can also carry out your little investigation by consulting the advertisements on generalist or specialized sites.
By having a good knowledge of the real estate market in the area you are interested in, you will be more credible when trying to negotiate the sale price of a house.
Negotiate the price of a house that has been on sale for more than three months
It is easier to negotiate the price of a house that has been on sale for a while than for a few days. The seller will be more inclined to make concessions on the price if his property does not find a buyer.
In the field of real estate, it is considered that a house put up for sale more than three months ago may have its price revised downwards. This often means that the seller is asking too high a price. In this case, to negotiate reasonably, you can offer a price 10% lower than that requested by the owner.
Highlight the weak points of the accommodation to lower the selling price
This technique is quite effective in lowering the selling price of a house. When visiting the accommodation, be very attentive to the faults and weak points. This will allow you to argue for a lower selling price.
To help you detect all the imperfections of the accommodation, do not hesitate to make several visits and draw up a list of the elements on which you can base your request for negotiation.
Advice : if it is a question of replacing the heating mode or carrying out renovation work, have an estimate drawn up by a craftsman in order to have an idea of the envelope to be provided. And in order not to forget any works, it is advisable to examine the DDT. This is the technical diagnostic file, normally made available to buyers during the visit. The document mentions the diagnoses of gas, electricity, asbestos, lead… Read carefully the conclusions of the experts who can recommend rehabilitation work within a mandatory deadline.
The art of negotiation: prepare your arguments well before presenting them
To negotiate a house well, it is better not to rush. Do not embark on total improvisation to lower the selling price of a property. Negotiation is an art, which requires preparation.
With your head rested, take the time to draw up an exhaustive list of the weak points of the accommodation (work to be planned, absence of garage, vis-à-vis, etc.). On a sheet, gather your arguments to be sure not to omit anything when the time comes. By preparing yourself in advance, you will appear more convincing in front of the owner.
Advice : never negotiate over the phone but face-to-face. In the presence of a real estate agent, use this professional as an intermediary to negotiate the sale price for you. He will use your arguments to convince the seller to lower the price.
Tip for negotiating the price of a house: advertise a lower price
To start the negotiation phase, you can play the daring card. Sometimes it pays! Then offer the seller a lower price than the ceiling you have set. Thus, the owner will make you a counter-offer.
Using this trick will maximize your chances of getting a lower selling price than you had in mind.
Can agency fees be negotiated when buying a house?
If the seller has called on a real estate agent to help him sell his property, you must plan for agency fees. These have a considerable impact on the selling price because they can reach up to 8% of the net selling price.
To buy a cheaper house, you can try to negotiate the agency fees, especially in the case of a simple mandate. This can help you get the property you want.
Advice : if the house is put up for sale by several professionals, canvass the different agents in order to have a better price.
Finally, if you are apprehensive about negotiating between individuals, call on a real estate negotiator. This market specialist will then act as a mediator and help you get the house of your dreams at the best price.
Read also :
- How to buy a house?
- How to build a house?