7 Effective and Profitable Ways to Negotiate a House Price

Buying a home, whether primary  or secondary , often involves haggling over the price. However, negotiating the price of a home is certainly different from bargaining for everyday necessities. There are specific strategies and considerations to keep in mind to ensure you get the best price without hurting the seller. 

The good news is that negotiating a house is very possible, especially if the property is still in the bidding stage or is a second-hand property. Even for new homes, many developers offer a discussion forum to help buyers feel more comfortable. The question is, how do you negotiate the price of a house effectively? Here are some steps you can try.

1. Know the Market Price

The first step before negotiating is to understand the market price in the area where the house is located. You can find this information from online advertisements, property data, or by comparing it with similar homes in the surrounding area.

If the seller sets a price significantly above the average, this can be an opportunity to bargain. However, remember to make sure your offer is still reasonable. Don't offer too low, as it can be perceived as unserious.

By understanding market prices, you can base your offer on a solid basis, not just a random figure. This will also increase the seller's chances of accepting your offer.

2. Pay attention to the condition of the house

The physical condition of a home significantly influences its resale value. If the home you're interested in looks poorly maintained or needs renovation, this could be a reason to negotiate a lower price.

For example, if the roof is leaking, the paint on the walls is peeling, or the bathroom needs repairs, you can use these renovation costs as an argument when negotiating the price.

In fact, if you want to be more objective, you can hire a surveyor or home inspector. A written report will strengthen your bargaining position because the assessment will be conducted professionally.

Also Read: Tips for Buying Your First Home, So You Don't Make Mistakes

3. Check the Legal Documents of the House

In addition to the physical appearance, the legality of the house is also crucial. Ensure the house has valid documents such as a Freehold Certificate (SHM), Building Construction Permit (IMB), and proof of payment of Land and Building Tax (PBB).

If any documents are incomplete, such as a house lacking a SHM (ownership certificate) or outstanding taxes, this can be grounds for a discount. The buyer will incur additional costs for these legal documents.

In other words, documents that are not in good condition can become a "weapon" in the negotiation process.

4. Don't get carried away by emotions

A common mistake when buying a home is falling in love too quickly. It's natural to immediately fall in love with a home with a beautiful design or a prime location, but don't let this preoccupation lead you to rush into a high price.

Remain objective. Look at the house not just from an emotional perspective, but also from an investment perspective and its actual condition. By controlling your emotions, you can negotiate more calmly and rationally.

5. Determine the Maximum Offer Limit

Before meeting the seller, determine the maximum price you're willing to pay. This figure will serve as a guideline to prevent you from getting carried away and agreeing to a price beyond your financial means.

In negotiations, ideally you can ask for a discount of around 10–20% off the seller's price. However, flexibility is still needed, as not all sellers are willing to lower their prices that much.

If the seller is unwilling to lower the price at all and exceeds the maximum price, it's best to walk away and look for another home. Remember, the property market always has plenty of options.

6. Review House Prices Regularly

If you don't plan to buy a house in the near future, it's a good idea to monitor the price of the house you're looking at regularly, for example once a month.

If the price hasn't changed for months, it's likely difficult to sell. You can take advantage of this situation to negotiate a lower price.

On the other hand, if the price of the house actually increases or there are other potential buyers who are interested, you may have to move faster to avoid missing out.

7. Ask a Property Agent for Help

If you find negotiating on your own difficult, the best course of action is to seek the help of a professional real estate agent. Agents typically have extensive experience and networks, allowing them to negotiate prices more effectively.

Not only that, the agent will also help you find a home that meets your needs, assist with the transaction process, and even handle the transfer of ownership on the property. This way, you won't have to handle all the details yourself.

An experienced real estate agent, such as one from RE/MAX, can be a trusted partner in this process. With their support, you'll not only find the home you desire, but also the best price, with a secure process.

Negotiating a house price requires strategy. This includes understanding market prices, checking the physical condition and legal status of the house, and maintaining emotional objectivity. Don't forget to set a maximum offer limit and regularly monitor prices to identify the best opportunities.

And if everything seems complicated, don't hesitate to rely on a professional real estate agent. With RE/MAX, the home negotiation process will be much easier, safer, and more profitable. RE/MAX agents are ready to help you find your dream home and get the best price within your budget.