Bartering for Your Home
If you want to know the value of the home you are buying, compare
it to other properties in the area that are similar in appearance,
size and surroundings. Take a look at some other homes and find
out the prices, then go back to your prospective home and compare
the differences. Pay attention to how quickly a home sells, what
the asking price is and what the home was sold for in the end.
If you cannot obtain this information on your own, there are plenty
of real estate agents that will be more than happy to assist you.
When you make an offer on a home, the seller will either accept
it or come back with a higher offer, closer to the original asking
price. More times than not, the seller will not immediately accept
your first offer. If you really want the home, you cannot turn
and walk away when they do not accept your (first) offer. Purchasing
a home is a barter deal. You must use the art of negotiation and
you must do so wisely.
You offer $100,000, the seller says $120,000. You say $110,000,
the seller says $115,000. Perhaps you will eventually settle at
$112,000. If the seller comes to a point where he/she won’t
budge, that is the time to make a serious decision. You do not
want to aggravate the matter by continuing to ask for a lower
price or refusing to come to their price.
If you are not interested, say so and then stop. If you are interested,
come to a price you can afford and settle, even if it is more
than you wanted to pay. Otherwise you have the chance of losing
out on the home or causing unwanted tension between yourself and
Purchasing a home is not like buying a rug in Mexico. The seller
of your dream home may not call your bluff or may not realize
that you really want the home. If you give up and leave hoping
they will lower the price later, you may call back only to find
out the home has been sold.
Remember that if a seller is stubborn about the price, it could
be for a variety of reasons. Many sellers have an emotional attachment
to the home. It may have been their childhood home, or the home
in which they lived with a spouse or child before the person died
or went away. It may have been a vacation home with many special
No matter what it was, a person’s home almost always has
a place in their heart, and it makes selling it that much more
difficult. Emotions are inevitable in the negotiating process,
but keep in mind that it is usually the person that keeps his
or her emotions in check that comes out the most satisfied. That
does not mean you should have no empathy for the seller, as showing
your understanding will probably help them warm up to you and
consider entering into further negotiations.
Be realistic when you are bartering for a home. Do not make a
ridiculously low offer, and do not expect the seller to come down
an absurd amount. You should know the approximate value of the
home and that should be the range where you barter. If you lower
your offering price too much, the seller may be offended and not
want to business with you at all.