If you’ve come to this post looking for how to negotiate the price of a home, it’s because you’ve already looked at something you like and need to lower the price a bit. Below, at Ker2000, we want to give you some practical tips and inform you of realistic ranges (with real numbers).
And if you’ve come here because you’re actively looking for homes for sale in Valladolid and want to know how to negotiate the price once you find one… That’s why this article will be perfect for you!
Why is it important to negotiate the price of a home?
Because, even if the price of a property you see in an ad seems fixed, in some cases it’s negotiable. Many homes listed for sale already have some room for a price drop. In fact, in markets with a high supply, such as in some areas of Valladolid and surrounding areas, not negotiating means losing money outright.
Also, if you’re going to need a mortgage, you should know that banks also assess whether the transaction is consistent with the market price (click here to find out the market price in Valladolid).
How much can the price of a house be negotiated?
This is the big question. And yes, we’re going to get involved.
The minimum you can attempt to negotiate is 5%, unless the owner has already lowered it several times and can’t lower it any further.
The maximum you can get is 10-15%, but this can only happen in very rare cases where the home has been on the market for several months, needs serious renovations, or the owner is in a hurry to sell.
If a property is listed for €180,000, you can aim to lower the price by €9,000 (5%) and go up to €18,000 (10%).
And in very rare cases, you can achieve a discount of up to €27,000 (15%)
How to negotiate the price of a house?
Before negotiating the price of a house, you need to have reasons to do so and convince the owner to accept your lower offer. To do this, you can follow these tips:
Research the market
Look for similar properties in the area, and if you find a similar one priced lower, that’s it! You now have an argument.
Quantify the defects and provide evidence
Provide evidence of why that house should be worth less, such as:
- Nearby properties that are worth the same or slightly more, but have been renovated, but the one you’re interested in hasn’t.
- Same case, but the nearby properties have an advantage, such as an elevator, storage room, pool, parking space, etc.
- A realistic estimate of what a renovation could cost based on what the property needs in its current condition. If you show a high estimate for basic things like flooring, doors and windows, plumbing and electrical work, etc., this is clear proof.
- Get an appraisal of the property showing that the current asking price is high.
Make a low but reasonable initial offer.
If the apartment or house is worth the €180,000 we used as an example and you want to get the 5-6% discount, offer €165,000, which is 8%.
The owner will likely make you a counteroffer of €170,000, which is the 5% you were hoping for.
Includes benefits for the owner
If you can pay for the property in cash, meaning without having to apply for a mortgage, and you let the owner know, this will be another reason to ask for a discount on the property price, as this will mean that the signing before the Notary will be completed in just a few days.
Don’t show too much interest
The trick we’ve left for last, due to the risk of losing the property, is the following: present yourself in a way that the seller doesn’t see you as too enthusiastic, because if they notice, they’ll know you’re willing to pay the price set, with no room for any reduction. Be friendly, but cold. Show that you’re interested, but not at any price.
5 Tips for Negotiating a Home Price
As a complement to the tips we’ve shared, here’s this video from a real estate investment advisor who explains her 5 tips for negotiating a home price. Hit play!
Homes That Cannot Be Negotiated
Aside from what we mentioned during the article, regarding the fact that there are homes that have already been reduced several times from their initial price and have reached a point where they can no longer be reduced, it’s worth mentioning that there are other types of homes that, as a general rule, are not open to negotiation, such as, for example, the new-build homes for sale on Avenida Santander in Valladolid.
This concludes our article for today, hoping it has been useful to you. Before we say goodbye, you might be interested in taking a look at our range of bank-owned apartments in Valladolid that we currently have to offer. We also encourage you to leave any tips you may have missed in the comments below. By doing so, you’ll be doing your part to help other users who may be reading this article, just as you are.
Now then, we bid you farewell, until the next article!
