6 points to negotiate when buying a home
Last updated on March 4, 2025
When making an offer to purchase a house, a buyer needs to speak with a homeowner to hash out various points. The goal of this back-and-forth is to make sure a transaction is fair for everyone involved. We suggest six key issues to address as parties attempt to seal a real estate deal.
Overview:
- Strategies for negotiating the best price for your future home
- 1. Asking price
- 2. Property condition
- 3. Anticipated work
- 4. Inclusions
- 5. Conditions
- 6. Date of possession
- FAQ
Strategies for negotiating the best price for your future home
Before your real estate journey begins, you have to carefully consider your purchasing power. You can target listings within your budget to avoid wasting time and experiencing potential disappointment.
It will be simpler to figure out what listings to visit that fit your required criteria by setting a price range from the outset. Proactive preparation gives you a foundation to negotiate more favourable terms. The challenge in this situation is to remain objective, stay calm and find common ground. The goal is not to overly complicate things or win a debate at all costs.
It will be easier to defend your offer if you have a solid understanding of the local real estate market and the asking price of comparable homes (similar listings in the same geographical area as a desired property). The results of a home inspection may also influence an offer to purchase. Keep an inspection report handy so you can refer to it while negotiating with a seller.
Some tips to keep in mind? Demonstrate your commitment to the process by asking serious questions. Remember that it’s sometimes necessary to make compromises. Listen respectfully.
“Negotiations aren’t limited to price,” explains Mikaël Leclaire, real estate coach at DuProprio. “It also involves taking a genuine interest in the other party and understanding the reasons why a property is being sold. Sincere enthusiasm and establishing trust with a seller can often make more of a difference than simply offering a financial argument.”
1. Asking price
The asking price is a key point to discuss. A buyer wants to get the best bang for their buck while a seller wants to rake in as much as possible for their property.
To set yourself apart, defend your position with strong, proven arguments. There is sometimes room for negotiation, which means a starting price may very well change. A few points to consider include:
Does an asking price reflect market trends?
First off, compare a property with similar listings that have recently sold in the area to check if this asking price is aligned with the market. How can you do that, you ask? There are some tools at your disposal, like the Registre foncier du Québec (French only) and DuProprio.com. Real estate ads and local papers are also good references to review recent transactions.
Another good idea is to visit similar homes in the area (with the same number of floors, rooms or equivalent lot size) to compare what’s available.
How long has a property been on the market?
The length of time a property has been on the market can have an impact on negotiations. If a property has been listed for some time (several weeks or months), a seller may be more motivated to accept an offer below the initial asking price.
Before submitting a promise to purchase, take another look at a listing and check its posting date. This can give a buyer more room to negotiate when discussing with a seller – who will try as hard as they can to minimize any price drop.
This is especially true if a property doesn’t attract many buyers or if other offers have been previously rejected.
2. Property condition
A property in excellent condition justifies a higher asking price. Makes sense, right? It represents a safer investment that won’t involve spending more after purchase. So it goes without saying that a property’s general appearance plays a pivotal role in negotiations. This can impact its market value in a concrete way.
If a house needs work, that means additional costs are on the horizon. However, bear in mind that a person wanting to buy a property could submit a lower offer to compensate for the amount that will be needed to cover renovations.
This is why a home inspection is recommended – to determine the exact nature of any work required and to find out about any hidden defects. An inspection will reveal any issues and provide a clear picture of property condition. Once again, there’s a good chance a price will be adjusted when all the facts have come to light!
3. Anticipated work
Whether a property needs major renovations or some minor work, all required repairs need to be considered during a real estate transaction. Structural issues, like a leaky roof, plumbing or electrical defects, or even a damaged foundation, affect the sustainability of a house and the safety of its occupants. Any of these points could be dealbreakers as they usually lower a property’s overall value.
If a project needs to be scheduled or costed after a house visit… call on RenoAssistance to connect you with contractors who will provide quotes for the work to be carried out.
It’s a wise move to get your information straight from the horse’s mouth during a visit. Quiz homeowners directly about the condition of their property. Ask them what work they would want done if they lived there a few more years. “This information can offer valuable insight into issues that may have to be dealt with in the short to medium-term,” says Mikaël Leclaire.
4. Inclusions
Inclusions are items or features permanently attached to or considered part of a home that will be included in a real estate transaction. Say, for example, a house is being sold with curtains, light fixtures, appliances. That information will be included in an offer to purchase.
Inclusions are usually a point of negotiation. A potential buyer can make an offer, conditional on the pool table or fridge staying put. This can result in a win-win transaction.
5. Conditions
In many cases, an offer to purchase will contain conditions that a potential buyer must fulfill: obtain necessary financing to buy a new home, sell their property first, schedule a home inspection, etc.
Both parties discuss these points and set a deadline by which conditions must be fulfilled.
6. Date of possession
So when can you officially move into your new home? It depends because the date of possession has to work for everyone involved.
On the one hand, a homeowner has to figure out where they’re going next. On the other hand, a buyer wants to sell their home before moving into another one. The parties share their information and consider each other’s expectations and obligations.
One thing’s for sure: you have to be well-prepared to negotiate confidently. Before making an offer to purchase, a buyer can get the ball rolling by reflecting on the six points listed above. They can get an idea of what they want so they’re ready to raise issues with a seller, who rightfully has the last word!
“Smiling and showing sincere interest in a desired home can have a bigger impact than we realize,” says Mikaël Leclaire. “Treating homeowners with courtesy and respect could increase their willingness to agree to your request!”
FAQ
How much can be shaved off a home’s asking price?
Several factors need to be reviewed, including property condition, amount of time on the market, demand for similar properties in the area and how low a seller is willing to go. It’s also true that specific circumstances can sometimes control how negotiations play out (like a bidding war or unlevel playing field depending on whether it’s a seller’s or buyer’s market).
Is an asking price negotiable?
Absolutely! Negotiations are common when making an offer. However, be aware that potential buyers have a responsibility to consider several points before talking with sellers: what budget they have to work with, asking price, property condition, work needed, inclusions, purchase conditions and date of possession.
Be well prepared by examining how a property compares to other similar listings and asking wide-ranging questions to be on solid footing when negotiating your real estate transaction.