 Home Buyers
Tips Archive
Cutting The Price
It is rare, particularly when dealing with older houses in
need of renovation, that a seller expects to receive the asking price of the house. It is
up to you, the buyer, to pay as little as will possibly be accepted. Here are some
suggestions for your negotiating strategy
- Exercise the most extreme politeness, even if you don't
trust those you are dealing with.
- Gently but firmly mention the flaws you have found and how
much they are apt to cost you to fix.
- Let it be known that you are looking at other houses as well
as this one.
- Make an offer twice as low as you expect to pay: the seller
will surely not accept your offer, but will make a counter offer.
- Ask the owner to include certain repairs as part of the
deal.
- Ask the owner to include in the deal certain items, such as
- Furniture
- Tools
- Appliances
- Restoration Materials
- Ask the owner to pay your closing costs or give you the time
remaining on the insurance policy to reduce your start up costs.
- Explore the idea of the seller's giving you a second
mortgage at a lower rate than the bank is giving you the first mortgage; if the seller is
planning on investing the profit from the sale, the interest you are willing to pay him or
her may be more than bank or other investment interest will yield.
Watch out for sharpies who just want to make a lot of money
on a house that is worth a little.
To get you through the legal technicalities, hire a real
estate lawyer at an hourly rate. You may find you actually save legal costs incurred in
broker-handled closings. Make sure your lawyer protects your interests adequately.
This Tip was excerpted from:
Reviving Old Houses by Alan Dan Orme, Garden Way Publishing, 1989.
ISBN# 0-88266-563-4
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