7 Things You Should Never Do When Negotiating House Price
These seven mistakes may cost you the house of your dreams! Here's what not to do when negotiating the price of a home:
1. Ignoring how long the house has been on the market
Days on market is always worth considering when making an offer. If a homes been on market for say, less than 21 says, you'll want to make a strong offer. If, however, it's been on market for more than 90 days, then you may have more leverage and be able to present a lower offer.
2. Showing you can afford much more than your offer
Pre-approval letters will always lend you credibility and should always be provided when making an offer. However, it may be counterproductive to produce a pre-approval letter from your mortgage broker or bank that lists a price for more than the price being offered. Instead, ask your lender to tailor the letter for the amount you're offering with the specific down payment accounted for as well.
3. Assuming all fixtures are included in the purchase
This comes back to a point I made a few emails back about the importance of being explicit and specific in your contract terms and offer. If you love the chandeliers or custom window treatments, be sure to identify these items that you want included in the offer and purchase agreement. The time to discuss these things is the moment the offer goes in, not the day before closing!
4. Focusing too much on the home price
Instead of focusing entirely on securing the lowest purchase price - which may turn off sellers - there are other ways to get the same result. For example, you could see if the seller would pay a portion of the closing costs, or if they're able to speed up or push out a closing date.
5. Not flattering the seller
Again, this comes back to a point I made earlier about the importance of connecting on a personal level with the seller. In what can be a highly emotional transaction, creating this connection may just help the sale swing in your favor. A personal letter directed to the sellers outlining why you love the house can often have a powerful and positive impact.
6. Low balling your offer
You have to be careful with low ball offers. They can lead to a seller flat-out rejecting your offer and refusing to engage in further negotiations. The last thing you want to do is get on the wrong side of the seller from the outset.
7. Insulting the home
You may want to renovate or upgrade to bring the home up to your standards, but none of this is of interest to the seller. In fact, you may offend them and again, get on their wrong side. It never hurts to be kind.
For more great tips on how to best negotiate the purchase of your home, be sure to reach out to me directly and I’ll happily guide you through some other great strategies!