Common mistakes to avoid when negotiating the price for your dream home

Negotiating the best price is the single most important step to buying your dream home. Not only is it exciting but it can be nerve-wracking for some. If your offer is accepted, you will be on your way to becoming a homeowner. If not, you will have to go through the process again. Therefore, it is important to avoid making any mistakes that could inadvertently end up costing you your dream home. Read on for Rosie & Rosie's guide to common mistakes people make when negotiating the price for a property, and how to avoid them.

1. Revealing your budget

Most people, when dealing with a real estate agent during the negotiation stage, forget that the real estate agent is acting on behalf of the seller. So, it is not uncommon to confide in them and consequently revealing the upper limits of your budget, or let your desperate desire for the house show. Real estate agents are known to be great salespeople, and a good real estate agent will try and get every single cent out of you. Thus, revealing your budget will lead to negotiating a much higher price. A tip when dealing with pushy or nosy real estate agents is to let them know you have comfortable finance approval but are aiming to purchase something at market-value.

2. Not being fully prepared

The market is constantly changing so it is important that you do your homework about the market before making an offer. You must always do a comprehensive research of the house prices in the area you're considering, paying particular attention to recently sold properties that are similar to the one you want. Being fully prepared also includes ensuring you obtain proper professional advice from your lawyer and broker and ensuring you have re-approved finance, a deposit and the ability to buy. Buyers with the most success are fully prepared and have the most information, and it will be glaringly obvious to a real estate agent who is considering your offer for the seller, whether you are a genuine buyer and underestimating or overestimating the market value of the property.

3. Obvious emotional investment

If you are in love with a property and are vocal about it, this could also give you a more expensive outcome. Buyer desperation generally pull in great prices, so play hard to get, or the seller (and their estate agent) will assume that you're prepared to pay more. Try to hold yourself back from being over-enthusiastic, try balancing this emotional investment by considering what might need to work on the property or what could impact its value.

4. Making an unrealistic offer

Sometimes making a lower offer than expected can work, such as when a property has been on the market for an extended period of time, but more often than not it may offend the seller. The seller (and their real estate agent) may see you as a less serious buyer. The strongest offers are set up so that there is a give-and-take that addresses the needs of both the seller and buyer. Try and consider the seller’s needs and meet them halfway.

While this isn’t an exhaustive list, a buyer’s agent like Rosie & Rosie will be able to assist and help you negotiate a price that is right for you.