Ways to Negotiate a Lower House Price

by : Art Gib

Real estate is one of the most expensive things that people buy. When shopping for clothes, tools, toys, computers, T.V.'s and even cars; discounts need to be at least ten percent or more to catch a buyer's attention. But with something as expensive as a house, even a two percent discount on the real estate can mean thousands of dollars saved.

Most buyers and sellers use brokers to help negotiate and close real estate discounts. The primary reason for using outside help is that buying real estate is a big decision and it can be rather intimidating. So people hire brokers to guide them along and make sure that all the legal stuff is in place. Unfortunately, these experts on real estate can be costly assets. Closing costs alone can be three percent of the overall house price for both the buyer and the seller. For a $300,000 dollar home, that is already $3,000 of additional fees. If buyers can find a broker who offers discounts, then closing cost can drop by hundreds or even thousands of dollars.

Another way to save money when you buy a home is to do a little research. Location is one of the most influential factors that can determine the value of a home. Consequently, it is always wise to do your homework and research the value of other properties in the area where you want to buy. Agents and sellers often set the asking price a little higher than a house is actually worth because they naturally expect buyers to negotiate the price later on. If you know the price of other homes in the area, you can use that information to justify a lower offer than the asking price. Knowing the appreciation history can be useful too. For example, if a housing area is depreciating, it my justify asking for a lower price

Another way to lower the price of a home you want to buy is to have it appraised by a disinterested third party. An appraiser or inspector can walk through a home and be able to give you an appraisal based on the size of the house, the condition of its carpets and floors, its age, the features inside and any repairs that need to be made. If there are mandatory repairs, a buyer can ask for the price to be cut by the same amount of money needed to make those repairs. And if the appraisal is lower than the seller's asking price, the buyer will have another justified reason to negotiate for a lower price.

Discount real estate is worth the time and effort it takes to find and buy. With so much information to gather and so many costs to consider, try to find a broker who will help make your purchase as affordable as possible.