By Rachel Walsh
Nov 2, 2012
Q: What are some ways to negotiate a price down?
A: Negotiating is more of an art than a science, and as my clients know, my favorite answer to this question and most other real estate related questions is, “It depends.” Sometimes it’s simply not possible to negotiate a listing price down and often times buyers just don’t understand that.
There are many factors that come into play. Will the house appraise up to the selling price? If not, the bank won’t issue the loan and that is a legitimate reason to offer less than the asking price. What are the comparable sales? Is the asking price justifiable?
To summarize, an offer should take the following into account: the location, the condition, and whether the defects are structural or merely cosmetic, and whether the home features an ability to add on or renovate.
The location is also important. We live in a wet state, so wetlands should and do affect the price of a home. Wetlands can affect your ability to put in a pool, expand the house or landscape as you wish.
Buyers should also consider how the house is priced. If it is priced competitively, then don’t mess around and understand that this is your home and not stock in a company.
— Rachel Walsh, William Pitt Sotheby’s International Real Estate, 203-912-5908