How Much Can YoHow Much Can You Negotiate the Price When Purchasing Property?

When you’re purchasing a property, it’s unlikely that the sellers will accept your first offer unless you’re offering above the asking price. When a seller submits a counteroffer, that’s when the negotiations begin. Ideally, you want to get the lowest price possible, but you also don’t want to be beaten out by other buyers. So, how much can you realistically negotiate the price when purchasing a property?

Local real estate market

The first and primary driving factor of real estate prices and how much you can negotiate is your local real estate market. Depending on what the current market is like, you could end up successfully negotiating your ideal offer or need to start looking for something else. Local real estate agents are the best people to consult with, as they should have an in-depth understanding of what the market looks like currently. Deal-making is even more key if you are looking to relocate to an unfamiliar area or have never been. The expert agents at Kenya Property Centre can help you negotiate the best price, based on the insider information they have access to if you are looking to purchase a home in one of the beautiful Kenyan cities and towns.

What can you negotiate on when purchasing a property?

There is more to negotiating than just the total asking price. Here are four main things you can deal with when you’re purchasing a property.

1. Purchase price

The first figure that you can negotiate is the purchase price. Your agent can help you determine a fair offer that is most likely to be accepted, based on the current market. You don’t want to offer an insultingly low price, but also want to try to get the best price that you can.

2. Closing costs

When purchasing any property, there are individual costs involved to close the sale. Depending on the property you are buying, the location, and the market, the closing costs will vary. Generally, closing costs will fall between 2-5% of the total purchase price. As the buyer, you negotiate that the seller covers the closing costs as an incentive to purchase. If they are trying to sell quickly, or you’ve made them a decent offer, then there’s a good chance they will pay for the closing costs. 

3. Be flexible with move-in dates

You want to get into your new home as soon as possible, but the more flexible you can be with your move-in dates, the more likely you will secure a lower price on the property. Once closing the sale, many things still need to happen, including inspections, appraisals, repairs, and mortgage approval. It takes time and can put a lot of pressure on the seller if the buyer wants to move in quickly. The more stress-free you can make the process for them, the more likely they are to consider a lower offer.

4. Cosmetic fixes and furniture

Many buyers don’t consider adding cosmetic fixes and even furniture as part of their negotiation. If you see anything that could use an update, such as the landscaping, or a fresh coat of paint, you can include that in your offer. On top of that, if there’s any furnishings or décor that you like, it never hurts to ask if they are willing to include it in the sale.