Negotiating a Real Estate Purchase

I’ve been wanting a bigger house for years now.  When I’m asked my price range, it’s difficult to give a number because taxes, interest rates, insurance, and closing costs need to be figured in to the equation.  My price range varies by about $30,000, but at least I’ve got a range, right?

When looking for houses in my price range, I sometimes feel limited.  There aren’t many places for sale at all in my area, let alone in my price range.  I expanded the area I found acceptable to live in and found a slightly larger variety of houses to choose from, but I’m still looking.

The problem with looking in my price range, though, is that I’m looking at the asking price.  The asking price is the maximum amount the seller expects to receive for the property.  It’s not set in stone.  It shouldn’t be viewed as the price, but rather as the platform at which negotiation can begin.

When considering making a real estate purchase, you can always offer lass than the asking price.  The seller may not accept your offer, but they will probably almost always consider it.  They will probably give you a counteroffer, and the negotiations can go back and forth until you’re both satisfied with the price.

Here are just a few examples of offers being accepted. 

• 1.  My aunt and uncle made a very low offer on a property that had been listed for sale for a long time.  They got their approximately $125,000 house for just $61,000.
• 2.  The owner of a home on my dad’s street wanted around $85,000, but through negotiations, was talked down to $55,000.
• 3.  A house I looked at but decided against buying due to the high price and improvements it needed was listed for $137,500 and recently sold for $90,000.

The asking price can be quite intimidating, but the seller asks so much because he or she knows that potential buyers will offer less than the asking price.  You may not always be able to get an awesome deal.  For example, a house a street over from us is listed at $85,000, but the owner offered it to us for $80,000, saying it was the absolute lowest he could go.  It’s not a house I’d really like to buy, but the seller knows we’ve been looking for a bigger house, so he offered his to us.  $5,000 may not be a huge discount, but it’s a discount nonetheless.

I strongly encourage you to make an offer rather than just viewing the asking price as being set in stone.  You may get a great deal, you may not, but if you don’t try, you’ll never know!

Article by Randi Millward