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How to Negotiate the Price of Your New Home

August 20th, 2015  |  Home Insurance

Canadian real estate is hot right now, mostly due to booming markets in Vancouver and Toronto. With prices being what they are, being able to negotiate a good deal is more important than ever.  Luckily for you it only takes a few minutes to learn how to get the best prices for your new home.

Define What You Need

Improving negotiation starts before you even get to look your adversary in the eye (more on that later). Many people struggle to understand the difference between needs and wants.  The chances are you have a few ideas on what things you absolutely want in your new home as well as everything your new home needs to have.

Make a two column list with all the elements you want your dream home needs have as well as everything a functioning home needs to have, then compare the two.  Keep in mind the more extra things you want the higher the price will be and the more your home insurance will cost.   

Ask yourself, how important is it to live in the trendiest downtown neighbourhood? Are you like me and can't stand maintaining a large lawn? More bedrooms or bigger bedrooms? Breakfast bar or full dining room?

Look at your competition

Now that you've whittled your list down to only a handful of the most essential items, take it along with your budget to your chosen real estate agent and find some houses that fit your needs.

When dealing with a seller, make sure to find out how urgent they are to sell. Have they had any other offers? Get to know the area and ask your agent what other houses are selling for in the neighbourhood.  This will give you a starting point for negotiating the purchase price of your new home.

Strive for a Win-Win Outcome

I know I referred to the seller as your adversary before, but that is perhaps too strong a word. While they do stand on the opposite side of this situation, the most successful negotiators try to make sure all parties walk away from a deal happy.  This isn't always possible of course, but try your best to compromise.

It's okay if they turn down your offer or if they don't want to waive a fee.  Acknowledge their objection, but don't just leave it there.  Adjust your offer and remove some conditions to find a happy place for both parties.  If the seller compromises on something, you should too.

Having confidence in your ability to negotiate has secondary benefits other than getting a great buying price on your new home, it also removes the stress from solving conflicts and cuts down on time wasted during back and forth negotiations.

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