What are the keys to negotiating the price of a home?

At the time of buying and selling a home, the seller seeks to get the maximum price for his property, the buyer, for his part, tries to make his possible acquisition as cheap as possible. When should the house price be negotiated and how should it be done? In order for the negotiation between both parties to reach the desired point from donpiso, they point out some keys such as establishing a budget, having solvency and knowing the market well.

It is necessary to establish a budget that will condition the search for housing. For this, a fundamental requirement is to go to a financial institution to ensure the possible granting of the mortgage loan. Today, the most normal thing is that the granting of said mortgage is for 80% of the approved appraisal value of the home that is intended to be acquired. For this reason, the buyer needs to have their own funds that allow them to meet the remaining 20% ​​of the value of the acquisition that is not financed by the bank, in addition to the expenses generated as a result of it, such as the payment of taxes.

Once the limit of the cost that you are willing to pay for a home has been established, you must take into account the margin of negotiation with which the real estate agent will try to reduce the price. “After the uncertainty that has occurred in the real estate sector as a result of Covid-19, experts may be more reluctant that the percentage of negotiation is very high. Previously, the figure could range between 15-20% although the current situation could cause it to be less now,” says Emiliano Bermúdez, deputy general manager of donpiso.

Carrying out a market study is essential to be able to reduce the starting price of a home. For this, it is necessary to compare the houses that have similar characteristics, (mandatory for the sale or rental of a home since June 2013), in addition to analyzing whether the property .

Another of the arguments that can be used when lowering the acquisition price is to know the . “If you consider that the price is high, and, furthermore, it has been on sale for more than half a year, you can try to argue that the price is not adjusted to the rest of the homes on the market,” explains Bermúdez.

During the negotiations that have taken place this year, Bermúdez assures that he has detected some common mistakes in the buyer: “There are clients who seek to negotiate for the sake of negotiating, they are not properly informed and they propose offers that are not viable.” However, the deputy general manager of donpiso adds that “the most frequent mistake is when you do not have the necessary solvency to acquire the home that interests the potential buyer.”