How to Negotiate House Price

When it comes to buying or selling a house, the final price isn’t set in stone. At the end of the day, both sides want to get the best deal possible. This takes some negotiating. As veteran real estate agents, we know a thing or two about negotiations. In this blog, we’re passing our expertise onto you. Here’s everything to know about how to negotiate a house price.

Negotiations 101

Negotiations play a big role in 99% of real estate transactions. Even in fast-moving ultra-hot markets, there’s usually a little bit of back and forth between the buyer and seller before a deal gets done.

If you’re about to buy or sell a house, you should expect to engage in some degree of negotiation. If this sounds intimidating or anxiety-inducing, don’t worry. Whichever side of the transaction you’re on, your real estate agent is there to guide you and make sure your interests are protected.

What Can Be Negotiated on a Home Sale?

When most people think of real estate negotiations, they think of one thing – price. Of course, getting a great price on your home (whether you happen to be a buyer or a seller) is very important, however, there are a number of other critical details that can also be negotiated during this stage.

Before you approach the market, you’ll want to know how much can you negotiate on a house, and what is (and isn’t) on the table in terms of negotiating.

Price: As part of the listing process, sellers will set an asking price for their home. That said, buyers are able to test the seller’s flexibility and negotiate on a different number.

Conditions: In Ontario, most offers will include some kind of condition. One common example would be a home inspection contingency, which allows the buyer to get the house checked out by a professional inspector before the deal goes through.

Timeline: Another detail that’s up for negotiation is the timeline. The buyer and seller can go back and forth on the closing and possession dates.

What’s Included: Most for-sale homes come with certain inclusions (also known as fixtures). However, buyers can negotiate on certain extras they may be interested in.

Need more advice on buying a house in Ontario? Read these blog posts next!

• How to Buy Your First Home in Ontario
• Do You Need to Include Conditions in Your Buying Offer?
• Moving to Toronto: How to Find a Relocation Specialist

How to Negotiate House Price as a Buyer

How to negotiate buying a house starts by first looking at what the seller is asking for. Then, factoring in the variables that may influence their decision. Some key factors are things like market conditions, potential interest from other buyers, and emotional elements.

Even if the seller doesn’t accept right away, a well-crafted and informed offer will almost always inspire a counteroffer – opening the door to further negotiations. You and your agent can then work with the seller to (hopefully) find a number that works for everyone.

How Much Lower Can You Offer on a House?

Everyone wants to get the best deal possible when buying a house. While negotiations will play a big role in what you’re able to achieve, it’s important to remain realistic when placing an offer and engaging with sellers.

Technically speaking, there’s no minimum bid or offer number in real estate. However, if you’re putting an offer on a house to low-ball the seller, you could inadvertently offend or alienate them, closing the door for future negotiations.

If you want to get the best price possible on your home, your best bet is to work with an experienced and knowledgeable agent. They’ll have the experience, expertise, and negotiation skills to know what to offer on a house in way that prioritizes your interests while appealing to the seller.

Selling your home? You’ll find plenty of related advice in these blogs.

• How Much Can I Sell My House For?
• How Long Does it Take to Sell a House?
• How to Choose a Realtor

How to Negotiate House Price as a Seller

Negotiating the final sale price is equally important for home sellers. Once offers start rolling in, you’ll need to act quickly and make major decisions about what you’re willing to accept for your house.

This is another area where working with a top-tier agent is essential. Your Realtor can help you determine which offers are worth engaging in (or even accepting). When the time comes to negotiate, they’ll hold the line to ensure you’re able to sell for the highest number possible.

Great Results Start With Pricing

Setting yourself up for success as a home seller begins long before the negotiation process. From the first steps of pre-listing preparation right through to closing day, you’ll need a solid strategy if you want to get top dollar.

With that in mind, one of the most important details of your sale is pricing. Selecting a calculated, well-thought-out asking price maximizes your home’s reach, without risking lost returns.

If you set your asking price too high, your home could spend longer on the market than you expected. Then, when an interested buyer finally comes around, they’ll have a major upper hand in negotiating a lower price.

Your real estate agent will help you choose an asking price that makes sense based on your home, compared properties, and trends in the local market.

Buying or selling in the GTA? We can help! Call us at 416-571-2724 or email info@arciteam.com to get started.