The old saying is that in real estate, everything is negotiable. But is it really?

When you go to buy a house, you’re certainly hoping to get the house for the best price and terms. If there are more homes for sale than people who want them, there is usually more room for negotiation – This is called a ‘buyers’ market. If there’s a shortage of homes on the market compared to the number of buyers looking the power shifts to the seller. This is called a ‘sellers’ market.

Here are some negotiating tips for home buyers to get the best deal:

Get your finances in order before you start looking for a house

Your offer is much more attractive to a seller if it doesn’t include a subject to finance clause.

Do your sums before getting too hung up on small price differences

At an interest rate of 4.3%, the difference between $195,000 and $199,000 is $19 a month. Don’t get stubborn and lose the right house because you had to win.

Base your offer on the home value, not the list price

The recent sales in the neighbourhood give you ammunition and information. If a home is priced at or below market value, you’re unlikely to get it for less. If it is priced above market value and has been on the market for a while, a lower offer accompanied by a market analysis may get you the home. This is where a good agent can be invaluable.

If you see a home you like, be prepared to move fast

When properties go on the market, they go very quickly. If you’re in a competitive market, make your first offer your best offer, if you take too many chances you miss out.

Don’t assume that the building inspection report will allow you to reopen negotiations

It’s certainly acceptable to ask for a discount if the inspection reveals major problems. But in a tight market, you may not get it. The building inspection is to give you confidence in the construction, condition and any maintenance items – not a time to renegotiate price as of right. Hitting the vendor up for petty discounts will only alienate the relationship between you and the vendor.

Find out why the seller is moving

The more you know about the seller, the more you can attractive you can make your offer; Does the seller already have a new place and want a quick settlement?
Is there a divorce involved? Does the seller have to find a new place and therefore would prefer a longer settlement or even a rent-back agreement? You have to ask a lot of questions of the listing agent and the seller. The more you know about the seller, the better strategy you can put together.

Use the Agent

While the agent is working for the vendor they are a huge resource of information and can tell you about the neighbourhood, schools, churches, transport and any recent sales as the more information you have as a buyer, the more confident you’re going to be

Expect to compromise

No matter your price range, you won’t find a perfect house. You’re likely to have to compromise on features and probably even on the big three: price, size or location. Enter your negotiations prepared to compromise, and you’ll be a step ahead.

Don’t get hung up on decor

There are a lot of things about a house that can be easily changed, including appliances, wall colours, carpeting and curtains, drapes and light fittings. Let the little things go.

Remember that terms can be as important as price

That could mean removing conditions by doing your due diligence before you make your offer, offering a bigger deposit, or changing the settlement date to accommodate the seller. The fewer conditions you have, the more likely you are to get the house.

Above all else, work with your agent, respect the home you are buying is someone else’s castle, the more they like you the better deal you will do. Negotiate fairly and your home purchase will be the fun and enjoyment you hoped it would be.

Written by Pauliene van Strien

Pauliene is a Licensed Real Estate Agent with Mike Pero based on the beautiful Kapiti Coast. Having seen a fair bit of the world after visiting NZ she lost her heart to it and in 2014 took the plunge emigrated her with her husband. You can follow Pauliene on her Facebook page or contact her on pauliene.vanstrien@mikepero.com or 022 675 0549

The information contained in this article is of a general nature and should not be taken as advice. It reflects the opinions of the writer only and does not necessarily reflect the opinions of New Zealand Home Loans.