Securing your home purchase at a price that gives you peace of mind can be a big challenge. We guide you through the process below.
Many home buyers buy with their heart, so if you team up with a professional buyer's agent, you can be in a far stronger position at the negotiating table.
Get a buyer's agent who is always on your side in the buying process
In the guide below you can read about:
- What do you gain from negotiating the price?
- Buyer's agent during price negotiation
- Good advice when negotiating the price of your home
Price negotiation when buying a home
It can initially be difficult to work out the right price for the property you want to bid on, especially if you haven't tried it before. There are many factors at play that can affect whether the dream home can be price-negotiated and become yours. It can be an incredibly stressful buying process.
It is especially if you are a first-time buyer that it can be difficult to hold your ground in a price negotiation. If you are a first-time buyer and are considering a home purchase, you can read more here.
Perhaps you have experienced finding your dream home, but the estate agent says there is already a bid on the property. It may be that this particular property has attracted a great deal of interest and has already been shown several times that day.
This exact situation can be incredibly stressful, especially if your only advisor is your bank advisor or property lawyer, who only reviews all the legal documents after a signed purchase agreement.
So if you don't want to stand unprepared and alone in the price negotiation, read on in this article to become a little wiser about price negotiation in general, and see our best advice on the negotiation strategy that will bring your dream home home.
What do you gain from negotiating the price?
In many aspects of life, it is normal to follow your gut feeling. But precisely when it comes to negotiating the price of your possibly future home, "buying a pig in a poke" can have fatal consequences.
It is therefore important to examine all the aspects that can support whether the price of the home is fair, and whether it is even a purchase you should pursue at all. In many cases, price negotiation can save you a lot of money.
This is important both in relation to your future bank loan and the accompanying interest, repayments, term, etc. But it is also important to secure the best possible price in case you suddenly find yourself needing to sell the home again.
There are of course many factors that are out of your hands as a home buyer, but if you manage to negotiate the purchase price down to a fair level, or for that matter below market price, you have secured a good foundation for your future from the outset.
The market's influence
One of the factors that is out of your hands as a home buyer is the state of the housing market. The market indicates whether you find yourself in a buyer's market or a seller's market. If supply is large and buyers are few, we are in a buyer's market, and you therefore have better conditions for negotiating the price.
If, on the other hand, there is a smaller selection of homes for sale and many buyers, we are in a seller's market, and price negotiation is therefore usually accompanied by more challenges. In this case, homes may be listed at far too high an asking price, and the risk of you buying at too high a price is greater.
Good advice for price negotiation on a home Before you start negotiating the price of your dream home, there are some things you should be aware of. First and foremost, before you start the price negotiation, you should thoroughly research the market so that you are also able to compare home prices. After that, it is also important that you make sure it really is the right home for you – and that the gut feeling is there.
Here is other good advice and tips for the price negotiation process
- Make sure your financial situation is in order in advance
- Know your maximum price in advance
- Research comparable properties and compare prices - Consider getting a building surveyor to examine the physical condition of the property
- Set a negotiation strategy in advance
- Use the building surveyor's cost estimate in the negotiation when checking for faults and defects
- Ensure a good atmosphere, as it creates a good negotiating environment
- Remember that the negotiation can be about more than just money
- Avoid negotiating based on your emotions, and follow the strategy you have set
Buyer's agent for price negotiation? It is a good idea to team up with professionals such as a buyer's agent. Buyer's agents at Bomae have a combined total of over 40 years of experience in the housing market. Bomae offers, among other things, home-buying advice, legal home-buying advice, and financial advice.
Christopher Wagner, partner and buyer's agent, states:
"If the estate agent is on the seller's side, and does nothing other than look after and advise on the seller's interests, then who is on your side advising you?"
So it really is a good idea to seek guidance for, among other things, price negotiation and much more from a skilled advisor. The seller's estate agent will always ensure the seller gets as good a price and sale as possible, which is why it is important to set a strategy for the price negotiation right from the start. Below you can see a few good pieces of advice from Bomae's advisors.
A buyer's agent will know the market, but will also be familiar with the estate agent's tricks, and that will help you as a buyer stand far stronger at the negotiating table.
Below you can see a few good pieces of advice from Bomae's advisors.
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