How to Get the Price Down on Real Estate Property
- 1). Be prepared to walk away from the house. This fundamental negotiating tactic will make you more convincing to the other person. Common mistakes include saying that you've "fallen in love" with the house or similar emotive statements. Make it clear that you can back out of the negotiation at any time.
- 2). Make an initial offer of at least 20 percent below the initial asking price. The lower that you can go, the more likely that you will tip the negotiation towards your favor. Many people are not prepared to hear such a low offer, and will be caught off-guard. Don't worry about insulting the other person--you can always increase your offer later if it's necessary.
- 3). Get pre-approved for a mortgage for the house or offer to buy the house with cash. This can often get you a substantial discount, especially if the seller is distressed and needs to sell quickly. Sometimes, paying in cash can earn discounts of as much as 20 percent.
- 4). Act nonchalant about each offer that you receive. Showing excitement or acceptance for a price can signal to the other person to stop negotiating. When you hear a good offer, tell the seller that you have to consult with someone else--a spouse, your banker, your employer--anyone else, just to provide some distance between you and the other party. This last move often trips the other person to lowering their offer at the last minute. You can also come back from consulting with your "higher power" and say that you can only act with an additional price reduction.
- 5). Conclude the negotiations once you've arrived at a mutually satisfactory price.
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