In a sluggish real estate market the time to sell a property is becoming longer: buyers who are rare and hesitant or who negotiate the price down. Because the more a good remains on sale a long time, the more the seller must lower the price to not stay with his house on the arms... even sell it at a discount.
The discount sale of a house
Time of sale and discount sale
The current context of real estate market causes the price of a house to fall in proportion to the number of months it is sold.
And the more time passes, the more the seller will have to agree to declines to hope to sell his property. Today, the statistics of real estate agencies and notaries show that less than half of the properties are sold within 3 months of their sale. And those who are in this time are because they respond to a request and they are presented at their fair price see slightly below.
If you want to sell your house quickly, determine or have it determined its fair price and do not hesitate to lower this one by 5 to 7% compared to the market price. This will prevent you from selling it a few months later...
How to negotiate discounts when buying a house
Today the power to negotiate is rather on the side of the buyer than the seller. In the provinces the room for maneuver of a buyer is more than 6% of the sale price and 4% in Paris (Estimate real estate network Laforêt).
Different elements allow a well-prepared buyer to find himself in a favorable position to get the seller to lower his price:
- The seller is in a hurry to sell: A house resulting from a succession or a divorce that must be quickly liquidated, a seller held by a bridging loan or a new house under construction, these are all cases where the buyer can negotiate a substantial decrease. This is especially true if it arrives with a loan file already ready.
- A concrete financing file: A buyer arriving with an agreement in principle from his bank or who can pay cash reassures the seller. It will more easily grant a discount if he knows in advance that the transaction will succeed.
- Work is expected: The more important the work, the more the room for maneuver is. Without forgetting that in the end, it will still be necessary for the buyer to finance them...
- Stalking small defects: A decoration of bad taste or too personalized and that will have to do again, an ill-conceived interior layout, are so many levers for a negotiation. Be careful, however, not to offend the seller.
- Negotiate free elementsFor example, free integrated cooking is also a way to lower the selling price of a house.
But to stay in a strong position a buyer must remain credible. Asking for a discount or getting there without knowing how it will finance the purchase is totally unacceptable during a negotiation.