Even if you've found a home that you love and want to make an offer on, you still don't want to pay any more than you have to. That is why negotiating the sales price of a home can be a bit of a challenge. Here are a few tips for helping you make a lower offer on a home and still have it accepted by the seller.
Know The State Of The Market
It always helps to ask your realtor what the current state of the real estate market is since it can be either a buyer or seller's market. When it is a buyer's market, it means that there are a ton of homes for sale and not enough buyers, so the conditions favor the buyer with the ability to make an offer below the list price. When it is a seller's market, it means that home inventory is low and there are too many buyers, leading to multiple offer situations where you typically pay above list price.
Know The Length Of The Listing
It's possible to do some research into the history of the home listing, so be sure to ask your realtor. You want to get a good idea about how long the home has been for sale so you can determine how willing the seller will be about going below their list price. If the home was recently listed, they are likely going to wait it out and see if other offers come up. If the home has been listed for a long time, they may be more desperate to sell to the first buyer that makes an offer.
Know How The Price Of The Home Compares
You should never take the price of the home at face value for what the home is actually worth. It's possible that a home is listed well above the market value in homes that they get more money for it. Your realtor can help perform a comparative market analysis where they compare the home you want with similar homes in the area that recently sold. This will give you a good idea if the home is priced correctly. If it's too high, you have some justification for making a low offer. If it is not accepted, then you can feel good about not overpaying for a home.
Reach out to a real estate agency for more tips on how to make a lower offer.
