How Much Do Sellers Usually Come Down on a House?

Negotiation is as much a part of buying a house as making your wishlist and choosing your location. Every aspect of the transaction is up for discussion, from any inclusions and exclusions to all other conditions of the purchase. 

For most buyers, however, the primary focus is on price. How much room for negotiation do you have when buying a home? The answer depends on a few different factors. 

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Is the Seller’s Price Part of a Negotiation Tactic? 

It isn’t usually recommended in today’s market, but some home sellers still believe in setting the price high, giving them room to come down if necessary. This method isn’t always obvious to a buyer who isn’t immersed in real estate on a daily basis.

However, professionals working full-time in the industry can spot an inaccurate price by analyzing the latest market statistics. We then verify our findings by seeing if any similar homes have recently sold in that area for that amount. 

If a house is substantially overpriced, a seller might be willing to come down quite a bit. Sometimes, though, it’s better not to engage and move on to a listing where the owner is more reasonable. 

Think of it this way: if a house is worth $1 million, and the seller lists it for $1.5 million, it isn’t really a great deal if you end up paying $1.1 million.

Another strategy a seller might use is to underprice slightly in the hopes of receiving multiple offers. If those offers don’t show up, they might be willing to negotiate. 

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Are you buying your first home and want to make sure you don’t miss any steps? Read the following posts next:

• First Time Home Buyer Checklist
• What’s the Average Down Payment on a House in Ontario?
• How to Buy Your First Home in Ontario

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What Is the Market Like?

To fully understand how much negotiation power a buyer may have with the seller, you need to take a look at what is happening in the market. In addition, consider if anything has changed recently. 

Sellers can have unrealistic expectations if the demand for real estate was high but has since cooled. Whether or not they are willing to accept a lower price can also depend on how long their home has been on the market. The more time passes without a reasonable offer, the more likely they are to realize that they need a new strategy. 

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Has a Home Inspection Revealed Areas of Improvement?

We always recommend a home inspection before finalizing your purchase, either independently or as a condition on your offer. If an unexpected issue turns up on the report, you could have more negotiating power. 

The seller will likely either have to make the necessary repair or offer a price reduction. You will also have a better idea on whether or not to make an offer or to move on to a different option.

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Where Else Are You Willing to Compromise? 

As we mentioned earlier, negotiating an excellent deal on a house is about more than just the purchase price. Other concessions could add substantially to the value of your home even if it’s not quite the same as cash in the bank. 

Examples include flexibility around your closing date. If you want the house sooner or prefer to wait longer than the traditional 30 to 60-day period, the seller may be willing to accommodate. 

Inclusions and exclusions are another avenue to explore. You could make an offer with the condition that the seller leaves the brand-new gas BBQ or patio furniture. If there are fixtures in the house that you decidedly do not want, you can add a condition for the seller to remove them. 

In either case, you save money on something you would have had to pay for regardless. These concessions can make your home more affordable even without a lower price.

Do You Have a Skilled Negotiator Working on Your Behalf

A skilled negotiator on your side is perhaps the biggest advantage in getting a seller to come down in price.  Buying or selling a house is more complex than it seems at first. 

There are market analytics to consider, legalities to observe, and inspection reports to understand. A skilled real estate agent will advocate for you and protect you from overpaying or buying the wrong home.

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Looking for more advice on how to choose the right real estate agent? Start by reading the posts below:

• Discount Realtors: Are They Worth It?
• How to Choose a Realtor
• Why Agent Feedback Matters When Selling Your Home

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How Badly Do You Want the House?

In the event that a seller absolutely refuses to budge on price or offer any other concessions, you will have a decision to make. Do you want this particular home badly enough to agree to their terms? 

If so, is the property priced reasonably as is, or does it exceed fair market value? No matter how difficult it may be, it’s often better to walk away from a house you love than to make an unwise financial investment. 

Whether or not the market is in your favour will also heavily influence your next moves. When you’re up against competition and inventory is in short supply, you may need to offer more. If plenty of listings are available and you are in no hurry to buy, then the seller will have to work harder to appeal to you. 

Whenever you are searching, the key to success is to have an in-depth understanding of the situation and to use every possible advantage you may have. A local real estate agent can provide constant guidance and support until you achieve the outcome you want! 

Buying or selling? We are here for you to provide concierge-level support every step of the way! Call 416-571-2724 or send an email to info@arciteam.com to learn more.