Brampton is one of the preferred options for Canadians to move to big cities, mainly because the city constantly evolves. According to Savemax listings in Brampton, when you want to buy a home in the city, you should expect to pay considerably less than in Vancouver, BC, or Toronto.
As of May 2022, the average home price saw a considerable 8 percent monthly decrease to approximately $1,147,000. However, when you buy a property, you can always try to negotiate a better sale price. Brampton is an excellent alternative to the pricier and busier cities of Greater Toronto and British Columbia.
What Tactics to Consider When Negotiating a Better Sale Price?
Negotiating a sale price may require a lot of organization, patience, and sometimes compromise. In the real estate market, price is king as most home buyers set their price range from the start and search for homes or condos within that set range. Yet, as the inventory is higher than demand, you may get a little more room for leverage, creating various negotiation opportunities that can work to your advantage. But what are the best tactics for negotiation?
#1. Work With a Realtor
The negotiation can allow you to find common ground for the sale price of a Brampton home. Every property is associated with a minimum and a maximum price, and the seller may try to get as close to the maximum price as possible. Conversely, as the buyer, you’ll focus on getting the lower price.
While real estate listing websites are available at the click of a button, a realtor could do more than that. In addition to showing you homes and condos, a Brampton real estate agent can be a crucial asset when negotiating the price and helping you determine how much to offer.
Moreover, realtors know and understand the local housing market, including interest rates change or what houses are set to grow in value. They can separate emotion from the home buying process, advocate on your behalf, and help you draft the most convincing offer letter possible, with all the contingencies you have.
It’s also essential to always communicate through your agent, so ask your realtor to handle any conversation between the seller and you. After all, realtors know how to phrase questions and requests without jeopardizing your negotiation and interest.
#2. Ask for Closing Costs
A down payment is one of many costs you must pay to close your deal. Additionally, you must cover closing costs, which are the expenses that go to the lender in exchange for servicing the loan. The most common closing costs include inspection costs, appraisal fees, and credit check fees.
Typically, closing costs on a property purchase range between 3% to 6% of your total loan value, which could present a considerable barrier between you and your house purchase. You may not realize, but you can ask for seller concessions beyond the home’s price. For example, you can ask the seller to chip in or even pay some expenses if you want to buy their home but have issues covering the closing costs.
The property seller may agree to cover the closing costs to close the sale faster. However, if you know there is a lot of competition for the home you’re aiming to buy, you may want to wait to ask for closing costs. Instead, you can ask your lender if you can roll the closing expenses into the loan.
#3. Know Your Market
The amount of space you have for negotiations is inversely proportional to the interest amount in the property, regardless of whether you’re in a seller’s or buyer’s market. When various buyers express their interest in a home, and there are more offers, you’ll have less room to negotiate the selling price. However, if the local real estate market is cold, you’ll have more room for negotiations, concessions, or repairs.
At this stage, your real estate agent can be an invaluable asset because they can assess Brampton’s market, talk to the seller or agent, and get a more intimate look at how willing they are to negotiate the sale price. You might even get a bargain if the property has been on the market for an extended period and the seller wants out. Yet, if the seller has had multiple offers, it might be a good idea to submit a reasonable offer immediately.
Generally, it might be reasonable to offer approximately 20% under the asking price in the buyer’s market if the property needs extensive repairs, such as foundation or roof issues. Offers ranging between 5% to 19% under price are also acceptable, based on the need for upgraded appliances or remodeling.
