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  1. #1
    RC Turnbuckle Jr. danielhr77's Avatar
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    House price negotiating tips?

    Hey Guys,

    On Monday afternoon I'm going to negotiate the price of my future home...

    I've never done this before, and I'm too nice to negotiate in a good way...

    Let's say the seller's original price was $420 and due to the economy situation the real state agent said $360-$370 to him...

    I want to offer him $320 and see what he says, and I know he's going to say no to that price...

    So, how much more should I offer? How do you negotiate? Face to face it's not easy for me...

    To be honest with you, I would pay $360 for that house, but if I can pay less, much better, more RCs...

    Thanks!

    Daniel.
    He Who Dies With the Most Toys Wins.

  2. #2
    RC Turnbuckle Jr. JimmyNeutron's Avatar
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    Whenever I negotiate anything I try to seriously act like I could care less if I get what it is I am negotiating over or not.

    For instance... my 2003 Mach 1 was listed on the lot for $22,000. I named the price I would pay at $16,000. I was told that there is no way they can go that low. I started listing faults of the car and mentioned I am not sure I even want it because of these issues and then walked away. The sales person called me within 2 hours wanting to seal the deal at $16,000.

    However, the house I made an offer on this spring played out a little different because we looked at everything else available in our price range and could not find anything that even came close to what we wanted in a home. This means we started where we would have liked to be and ended up increasing the amount quite a bit. The property was listed at $120 but up for short sale. Made offer at $68 expecting to need to go higher. Bank (bank owned property) came back at $90. I bumped the offer up to $73. Bank counter offered at $80. I made the final offer at $78 and it was accepted but since it is a foreclosure/short sale we are still waiting for closing.

    Just make sure after everything is said and done you don't get caught up in the negotiating and end up paying more than you really wanted for the place. I have seen that happen quite often!
    Whatever it is I just typed... could be wrong.

  3. #3
    RC Qualifier
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    Don't negotiate with yourself.

  4. #4
    RC Qualifier
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    Be sure to have a number that you absolutely don't want to go over. Don't go over it no matter what. When prices come close, people get tempted to just get it over with and pay too much or sell for too little.

  5. #5
    Marshal Double G's Avatar
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    Get an inspection on the house and spend time walking through it looking for areas needing updating or fixing. Put a max on what you would pay and do not be afraid to start low with your support as to why the price is given, but not low enough that you won't be taken seriously. Do not be afraid to walk or let emotions get in the way. Not sure about where you live, but the houses we bought we have not gone face-to-face; rather had our realtor draft a purchase agreement with the price along with what we would like to keep in the house (detailed to items that could be easily removed such as the fridge, stove, dishwasher, etc). The counter offers came back the same way.
    We bought a foreclosed house about a year ago knowing full well what it needed to get it back into shape. Our realtor did a market survey of better-condition homes sold in the area. He knew what we expected to pay and thought our initial offer was ridiculous (probably 15% off the listed price) but the bank came back right were we thought and we snatched it up. A lot of sweat equity has gone into the house so far but still a lot to do and we plan on breaking even--more or less--but plan on living there for many years.
    The Super Derecho

  6. #6
    RC Qualifier westoakmech's Avatar
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    You probably will not be face to face with the seller, unless it is not listed through a real estate company. You can ask for anything you want, all they can do is say no. You can also ask for money towards closing in the deal. When I bought my house last year, we put in a certain dollar amount towards repairs in the contract. So once we did our inspection, which is not done until you are under contract, they will automaticly repair up to that cost. IE we agreed upon $1500, so any little item we found in the inspection period, they just repaired, no more negotiation. We also got $3000 towards closing cost. What kind of morgtage are you doing, different ones have different things they look at during apprasial. Like a fha loan, they are really picky about peeling paint. You should be able to sit down with your realator, and they can help you with the process. I know that real estate laws are alot different from state to state though. So good luck.
    Rusty 2.5R,T-max 2.5 & 3.3,Summit VXL Nitro 4-tec

  7. #7
    RC Turnbuckle Jr. danielhr77's Avatar
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    Hey Guys, thank you for your replies! That's the thing, this is a face to face negotiation and I don't have a good poker face. About the money, I have the cash ready in the bank, that's why I want to drop the price, here right now is rare to have entire the money to buy a house. The thing is: I say $320, he says $360, so what's the next step if the says no? Say $330? $340? Say goodbye and wait a few days for him to call? I really like this house buy I think $360 is a little too much.
    He Who Dies With the Most Toys Wins.

  8. #8
    RC Qualifier
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    Since you have the money offer 320 and tell him you can have a certified check tomorrow in full. Cash versus getting a loan makes a big differance to some people.
    Drive it, Break it, Upgrade it

  9. #9
    RC Turnbuckle Jr. Nitronaught's Avatar
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    Quote Originally Posted by jcjhl69 View Post
    Since you have the money offer 320 and tell him you can have a certified check tomorrow in full. Cash versus getting a loan makes a big differance to some people.
    Cash talks,,, Also check out what houses of the same size have sold for in that area (public records of your county tax appraiser)...

    Take a good long visual look at the house as best you can, roof, windows, heating, a/c, any obvious condition issues, this will play a bit in the negotiating...

    Lastly how much are you WILLING to pay for this house? A $20,000.00 difference is a huge amount to have to pay when you look at a mortgage of 20-30 yrs.....

    Appraisal values of the homes in the area and the condition of what you are interested in, how quickly the seller wants to move and how long the seller has had the home on the market are your key bargaining features...


    Sounds like you are not using a real estate agent, if not you better make sure the title of the home is free and clear through a title agency... Could be a lean on the home and you would inherit it in many cases...

    Have you had a walk through of the home? Things you see you want changing also play a role in it's repair...
    All Lives Matter
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  10. #10
    RC Turnbuckle Jr. danielhr77's Avatar
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    Thanks guys! Well, I said $320, he said no, bump it to $340 and he will think about it... I guess he's not going to let it got for less than $350...
    He Who Dies With the Most Toys Wins.

  11. #11
    RC Turnbuckle Jr. Nitronaught's Avatar
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    Quote Originally Posted by danielhr77 View Post
    Thanks guys! Well, I said $320, he said no, bump it to $340 and he will think about it... I guess he's not going to let it got for less than $350...
    What are the homes that are comparable in the same area selling for... If you know that you have some bargaining power to make your counter offer...
    All Lives Matter
    United We Stand, Divided We Fall

  12. #12
    RC Turnbuckle Jr. ip42800ht's Avatar
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    How to go about purchasing a home is dependent on the market you are looking at.

    Affluent areas with good markets right now are looking at less than two weeks on the market with a multiple offer scenario. Good luck trying to go under asking price. It's not going to happen.

    You need data on the comps in the area, and see how those prices compare to the house you are looking at. Look at how long they've been on the market, etc.

    The most important aspect is to not get hung up over ONE house. There's lots of inventory out there...look around. Overpaying for a house hurts you, not the seller.

    Negotiation tactics differ, you can play hardball, pretend you rule with an iron fist, but some sellers don't go for that. With houses that have been on the market a while, you have that option, because it can work. If the house has only been on the market a week...you have very little leverage.

    Good luck.

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