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Buying a home? Here's How to Negotiate with the Seller | RealtyPin.com
Jan 16, 2013 (04:01 PM EST)
NEW YORK, Jan. 16, 2013 /PRNewswire-iReach/ -- You've found your dream home, and you're chomping at the bit, ready to buy a home. But, you're not sure you want to pay the price that the owner has listed. So, can you convince the seller to lower their price? With the right moves, the answer is likely yes!
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In addition to standing your ground, there is another way you can show the seller you're serious about your offer. It's called increasing your "earnest money". "Earnest money" is an amount you pay to the seller when you make an offer. It can range anywhere for $500 to 5% of the home's value. It's designed to act as a good-faith payment. Often times, this money goes towards the closing costs once the house is sold, so why not offer them more than they are asking? By doing that, you increase what you pay now -- but it shows the seller your serious intent. Luckily, it won't necessarily increase your final and total price.
In addition to the traditional 'let's meet somewhere in the middle' approach, there is one more way you can get the buyer to reduce the overall price. If the house has been on the market for awhile, or if the seller is set on the selling price and won't come down anymore, ask for some concessions. In simple terms, these are costs you'd like the seller to pay for -- like part or all of your closing costs or certain repairs that need to be made to the house after the inspection is completed.
It never hurts to ask. The worst that can happen is that the seller says no. But, he may say yes -- and you'll end up saving money in the end. Just be sure to include all concessions in your written offer, since it's likely that your legal contract will be drafted from the purchase offer.