Should I haggle over price in LA Real Estate?

Should I Haggle Over the Price?

Buying a home, especially for the first time, is emotional. You’ve saved and scrimped for months—years even—and now you’ve found the home of your dreams. You’re in love and you don’t want someone else to get it.

Joss Whedon, the mastermind behind Buffy the Vampire Slayer says, “Never sit at a table you can’t walk away from.” That is, don’t begin a negotiation if you’re not willing to say “no” if it doesn’t move in the direction you favor. The truth is…if you can’t walk away from that home, you probably won’t do well and may even give up more than you need to.

When you’re negotiating over the purchase of a home that you’ve become emotionally invested in, it’s more difficult to stand your ground or walk away when the haggling becomes fierce. To successfully haggle over price in LA Real Estate, you need resolve based on facts, not emotions.

Base your resolve on knowledge of the market: knowing the market gives you the advantage moving on to another similar home if this one doesn’t work out.

Let your professional do the haggling: Your real estate professional knows which areas in the deal might be negotiable and which probably aren’t. She also knows, or can learn, more about the home’s situation.

  • Has it been on the market for a while?
  • Is it being sold by the former residents? Or, is it being sold by a nephew that inherited it? Is it part of a divorce? The more you know about the seller, the better you can judge if they’ll negotiate. Public records can give you some information about both the property and the seller.
  • Are there circumstances in the neighborhood that can give you wiggle room (i.e. a shopping mall going in near by, periodic odors wafting in the home’s direction a couple times a year from nearby industry)?
  • Know what the nearby comparable homes sold for and why (updated kitchen, new bath, in-ground sprinklers).
  • Ask! If you don’t ask, you don’t know. The more questions you ask, the more information you have to negotiate with.
  • Stick to the basics and don’t get hung up on easily changed decorations, appliances, carpeting or window treatments. You’re buying the structure.
  • Avoid contingencies. If you’re asking for concessions and negotiating the price, don’t expect the seller to agree to a contingency on the sale of the home you currently own.
  • Determine which is most important to you: location, price or size. Then, craft your negotiations around the on that is most important to you and your family.
  • Know if you’re in a buyer’s market, a seller’s market or a balanced market so you can tailor your negotiations to the market forces. In a seller’s market, try negotiating for simple additions to sweeten the pot, but don’t offer low-ball pricing unless you know the seller is in a distressed situation. In a buyer’s market, push for options on closing times, upgrades to flooring or appliances or keeping the patio furniture. In a balanced market, expect negotiations to take longer, or agree to things like splitting costs.

You want the seller to feel that he came out well, even if you win some concessions in the negotiations. When both the buyer and seller feel good about the transaction, the negotiations will be smoother and more positive.

Compliments of Virtual Results

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Should I haggle over price in LA Real Estate?

Jerry and Rachel Hsieh

In the past 13 years in real estate and at the age of 38, Jerry has had the good fortune of experiencing all of this at some point and has established himself as one of the premiere AWARD WINNING Realtors in the industry. Jerry began his career at Coldwell Banker with incredible heat: He was named the top “rookie” agent his inaugural year with over $4.5 million dollars listed and/or sold (Most 1st year agents don’t complete any transactions). Since then, his real estate career has been non-stop and he has quickly become the realtor that other young realtors talks about. In 2010, in a down market, Jerry and Rachel sold 24 homes within a 1 mile radius of the Pico/Fairfax area. They have sold over 50 homes in the Picfair Area in the past 4 years, more than any other realtor. From 2011 until now, Jerry and Rachel’s Team has grown, as has Jerry’s experience and expertise.