When buying a home, you would want to get the best deal out of it. But, how do you go about negotiating a good price? Negotiation in real estate can be tricky, but it can be easy with the right tips and techniques.
In this article, we will provide you with some tips on how to negotiate the best price for your home. We will also share some tips from real estate expert, Janelle Flaherty, who was recently featured on the Icons of Real Estate podcast, where she discusses the importance of proper communication when dealing with clients and shares some tips to help those interested in a career in real estate.
So, let's get started!
About Janelle Flaherty
Janelle is a seasoned real estate professional with more than 17 years of experience in the industry. She has extensive knowledge of the negotiation process and has been successful in getting buyers and sellers their desired results while providing exceptional service.
Growing up, Janelle was already quite acquainted with the real estate business. With her parents being real estate investors themselves, she learned the basics early on. However, she got her first actual involvement in real estate when nannying for a family, where the father was a big-time real estate agent. He needed some help with writing contracts, and that was when Janelle learned the ropes.
Janelle graduated from Arizona State University in 2006 with a bachelor’s degree in marketing and received her real estate license that same year. From there, she got her feet in tenant management and worked in commercial real estate before focusing on buying and selling equestrian properties and joining Sotheby's International Realty. From there, she continued to grow her skills and eventually earned a spot as the top realtor in Arizona.
Now, Janelle is a member of the National Association of REALTORS and the Scottsdale Area Association of REALTORS, assisting clients in the equestrian community with their real estate needs, including but not limited to horse properties throughout Arizona.
Janelle understands that buying or selling real estate properties is more than just a transaction—it is a life-changing experience. That is why she is dedicated to providing exceptional, personalized service for all of her clients.
6 Success Tips for Negotiating the Best Price for a Home
The key to saving money on a house purchase is proper knowledge and preparation. Here are six tips on how to negotiate the best price for your home.
1. Do Your Research on the Current Home Market Values of the Area
The most important step to negotiating a good price for your home is to research the current market values of similar properties in the area. Doing so will give you pieces of information that you can use as leverage when making an offer on a property.
For example, if you are looking to buy a ranch-style home in a certain area, and you see that similar properties have recently sold for $400,000, then it would be reasonable to make an offer of around $385,000. This way, you can get the best deal while still making sure the seller is getting a fair price for their property.
Also, always remember that the local real estate market trends are constantly changing. So, make sure to stay up-to-date with the current market values.
2. Ask the Right Questions
Preparing for a house price negotiation involves more than just doing research. It also requires you to ask the right questions. Good examples of questions are the following.
- What is the seller's motivation for selling the house?
- How long has the property been up for sale?
- Are there any issues with the house?
- How much can I really afford for a home purchase?
- Is the property in a vulnerable area?
- What extra features the house has?
By knowing the right questions to ask when purchasing a home, you will have a better understanding of the seller's needs, which can help you come up with an attractive offer.
3. Use an Online Home Estimation Service
A home estimation online service is a great tool for negotiating a house price. It uses advanced algorithms to provide an estimated market value of properties based on their location and features, giving you an idea of what other buyers are paying for similar homes in the area and helping you set realistic expectations when it comes to making an offer.
4. Get Pre-Approved for a Mortgage
Having a mortgage pre-approved when buying homes will give you more bargaining power. It means that you already have the funds to buy the property, which can be an attractive proposition for sellers and give you more room to negotiate the price.
In a way, having the fund on hand will give sellers the impression that you are serious about buying the property and will make it easier to close the deal.
5. Know Your Priorities
This means deciding which features of a property you can live without and what you consider non-negotiable. Doing this will help you determine how much money you are willing to spend on the house, so you do not end up overspending.
6. Seek the Help of a Real Estate Agent
Having a local real estate agent by your side can be immensely helpful. With experience, they already have the knowledge and skills how to negotiate a house. They have access to resources that can give them insight into market trends and prices, as well as advice on how to handle negotiations with sellers.
Moreover, agents are very good at finding compromises between buyers and sellers, which means they have an excellent understanding of how the real estate market works and can use this knowledge to get you the best deal for your home purchase.
Once you know how to negotiate the best price for your home, you can start on the right foot in finding the best deals. It can even open up amazing opportunities for you to set your feet on a rewarding career in real estate!
Pursuing a Career in Real Estate: How to Make It Work with Clients
On the Icons of Real Estate podcast episode titled “The Secret Ingredients Of the Communication With Customers,” Janelle has a very interesting conversation with host, Tim Callaway, where she emphasizes the importance of being a resource for clients beyond just buying and selling homes. According to her, part of her success was due to her being able to communicate properly with buyers, sellers, and other people involved in the business, providing them with the information they need to make informed decisions.
Here is how you can make your real estate career work according to Janelle.
Take Advantage of Referrals
Referrals give you the opportunity to build relationships with existing clients. By getting referrals from happy customers, you can expand your network and maximize your chances of finding new buyers or sellers.
Referrals are also a great way to build trust and credibility, as current customers can vouch for the quality of your work.
Stay in Touch with Your Clients on a Regular Basis
As you start your career in real estate, you should do your best to put your name or brand in the minds of your potential clients. So, stay in touch with them on a regular basis.
For example, you can send out emails or postcards with helpful information about the market and tips for buying and selling properties. You can also update them on what has been going on with your business, letting them know if you have found any promising properties or if you are aware of changes that may affect their decisions.
Communicate on a Personal Level
According to Janelle, communication with clients should not only be done on a business level but most importantly on a personal level! This means that you should do your best to get to know them better and understand their needs and wants.
By understanding the motivations behind their decisions, you can provide them with pieces of advice that are tailored specifically for them. Moreover, this will help build trust between both parties as well as make it easier for them to trust your judgment when making decisions.
Always Plan Ahead for What You Will Be Doing with Your Clients
Janelle says that before meeting with a client, you should always plan ahead and come up with an agenda. This will help ensure that your meetings are productive and efficient. Having an agenda also lets them know what to expect.
For example, if you are planning on negotiating a price for them, make sure to have the details of the property ready as well as all the relevant information that will be useful during the negotiations.
Moreover, be prepared to answer any questions they might have and provide proper guidance. If necessary, create visual aids or do research ahead of time to ensure that you have all the answers they need!
Find Ways to Educate Your Clients
It is also important to offer your clients some kind of educational platform where they can follow you.
One good way to do this is by creating a blog or website where you can share helpful tips and advice for your clients. This will give them a better understanding of the real estate market, as well as help strengthen your relationship with them by proving that you are willing to go above and beyond to help them make smart decisions.
You can also launch a podcast, where you can have guests from the industry sharing their stories, experiences, and tips. Alternatively, you could also be a guest speaker on other podcasts, which will help you reach a wider audience.
Establish a Support Program to Help People in Your Network
The last (but definitely not the least) tip that Janelle shares, is to establish a support program. This is something that will benefit both you and potential clients.
You can create a system where people in your network can access helpful resources, such as forms and contracts, market updates, or other materials they may need when entering the real estate market. Moreover, you could also provide assistance with negotiations or advice on how to best handle certain situations.
In Janelle's case, she went out of her way to start a market fair that supports other women in their businesses, providing them with the resources that they may need. This type of initiative will go a long way in helping you build relationships and establish yourself as an authority in your niche.
These are some of Janelle's tips on how to be successful if you want to pursue a career in real estate. Negotiating the best price is just one part of the puzzle—you need more than just bargaining power if you want to succeed. By following her footsteps, you will soon acquire the skills necessary to become a top-notch real estate professional yourself!
For more about how to properly communicate with your clients when pursuing a career in real estate, you can watch the entire podcast below.
Start Your Real Estate Journey with Janelle Today!
Whether you are buying a home or are considering a career in real estate, Janelle can help you with both. Reach out to her today and learn how you can get the best price for your home, as well as gain invaluable insights into the industry.
You will never know—you might be the next real estate success story! So, what are you waiting for? Get in touch with Janelle and start your journey today!