How to negotiate buying a house (with proven tactics from a realtor)
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How to negotiate buying a house (with proven tactics from a realtor)


Welcome to Homebuyer’s School brought to you by Brookfield Residential. So before we begin if this is your first time on this channel and you want to get the latest strategies tactics and tips on home buying, click the subscribe button below, hit the little bell so you don’t miss anything. Hi everyone and welcome to another
edition to Homebuyer’s School, today I’m joined by Eddie D’ambrosio, a real estate
agent with Remax Elite and today the question we’re gonna answer is what’s
the best way to negotiate a purchase price of a home? So Eddie this is a big
question a lot of people want to know is how do I negotiate down that purchase
price? Yeah that’s a great question. I think a lot of—every buyer wants the
best deal right so everyone’s trying to get the best deal they can and strategy
is the key here, so when I talk to my clients about this kind of the first
step in this process of getting the best deal is understanding—understanding fair
market value or current market value of the property that you’re looking at from
that point once you understand what similar properties are selling for then
you can formulate a good strategy to go about getting your home for the low end
of that spectrum. And where do you go about doing this
market research? The first step nowadays with access to online information is get online, do a
bit of research and then take a look at similar homes to what you’re looking at
online and see what they’re listed for, what they’re selling for if you can, but
really—really you’re gonna get more information from your realtor. Your
realtor has access to information and tools that will help you to
understand what properties are similar properties are selling for around you. Is it also a matter of going out to different homes and viewing those homes
that are similar to the ones that you’re looking for whether new or resale? Yeah I think anytime you can look at more properties up to a certain point
where I mean I guess you can look at too much so try to look at a few homes that
are kind of similar to—to maybe that one that you’re really interested in and
then from there you can maybe more easily make comparisons. So once you’re finished let’s say you know, you have your price
range right, so what’s the next step in terms of what do you need to prepare for
before you start actually doing that negotiation with the seller or
salesperson or so on? Well I think whenever you’re out looking for a home,
one of the first steps I always speak with clients about is go in to speak
with your bank or mortgage broker, get a pre-approval just so that you understand
that kind of the price range that you should be looking in—so that may be as a
as a first step is a good place to start and then— How do you like—so maybe
this goes into the really technical aspect, but like when you’re
actually face to face with the seller or a salesperson, what are some tricks that
you would do in terms of negotiating that price? Just like presenting a price,
be like, “well I don’t like that price so I’m gonna go with this much” —right? Yeah so I mean that’s the best way you— you can do it if you can just you know,
okay, put it put in a low price and hope for the best but that’s where it
went earlier when I was talking about you know understanding what is a good
price, what should this property be listed for and determine is it priced
really competitively, is it overpriced?— and then from there determine you know,
where your offer should come in at and then when every— because whenever you
can make an offer based on factual information on data, on previous
sales, there’s so much more power, you have a lot more support to that offer so
rather than just throwing out a number for the sake of it because of course
everyone wants to get a deal. But if you find let’s say a house that you
know you’ve done your research but it’s beyond that price but you really want
that house, is there is there a certain point where you’re like, I can’t bid on
this because it’s way too over valued? You know, I think it’s always worth a shot
if you’re— if you’re especially— especially maybe in more of a buyers market you
may have a little bit more room with the seller to to go for those properties
that are just a step out of your price range, you may want to consider you
know, you may want to consider looking at
properties that potentially need a little bit more work as typically
there’s more points on properties like that to negotiate off of. Yeah. Do you have any other— anything else to add in terms of how to negotiate a
purchase price at all? So I think another really key thing here is when you are
looking at properties to be really diligent with your observations and
each property because it’s through those tours of the home where
you’ll really be able to to take down a list of of those items that are
gonna factor into the purchase price of the home so that might be the condition
of the property, the amount of work still needed in the home, how current or
dated is that property because— and because these are the things that
are really going to help you to negotiate that purchase price especially
if you notice that you know, there’s a new furnace needed and a new roof is
needed on that property, pretty soon bringing up items like this to the
sellers attention you know, they can be great tools to negotiate. Awesome well thank you
very much Eddie. Thank you very much everyone for joining us and we’ll
catch you next time. That’s another edition of Homebuyer’s School. Tune in next time for more expert tips and tricks, and visit homebuyersschool.ca to bring you one step closer to finding your dream home. As with everything, it would be great if you like and share our videos, also please let us know if you have any home buying questions you want us to answer.

One Comment

  • Homebuyer's School

    When buying your last home did you negotiate the house price? How did it work? Remember to watch our other videos on tips and advice when buying a home for the first time: https://www.youtube.com/playlist?list=PLTRYbItmaqW93h3CigBfSidCDiNjw0ElR

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