Demand is building across the GTA housing market this spring, but that doesn’t mean buyers can’t negotiate.

The art of negotiating is an extremely important skill in any property purchase and if you are represented by an experienced real estate negotiator, it’s possible  – even in the strong Seller’s market in Toronto – to have productive discussions with sellers and reach an agreement that will work for you. Each member of the Christensen Real Estate Group is an experienced negotiator and can guide you through the buying process.

Here are a few of our negotiation tips on where to start…

1) Learn the seller’s motivation

Any information you can find about why the seller has put their home on the market can work to your advantage. Have they already purchased another home? Are they preparing to move out of the area for a new job?

Knowing the answers to these questions can help you establish the seller’s preferred timeline. This is one of the best negotiation tips as once you have this information, you’ll have a better idea of how motivated they are to accept an offer and get the transaction completed.

Of course, not every seller will come right out and give you this information. But you’d be surprised by how many will provide an honest answer during casual conversation (especially at an open house or before you’ve expressed strong interest). It never hurts to ask.

 

2) Know the home’s value

Before you walk into a negotiation, ensure that you’re fully prepared. Treat it like a research project. Know the sums that similar homes in the neighbourhood have recently sold for.

You should also know the factors that could make the house or condo unit you’re looking at less attractive to other buyers. Maybe you don’t care that the building is nowhere near public transportation. But pointing it out to the seller could make all the difference—especially if you can demonstrate your knowledge of how proximity to public transportation usually impacts property values.

To truly understand what a home is worth, work with a real estate agent who knows the neighbourhood—and the real estate market—inside and out.

 

3) Know which compromises you’re willing to make

If you want a particular home badly enough, you may be willing to make certain concessions. But you should always know your limits before you start negotiating.

As just one example for negotiation tips, you should know with absolute certainty whether you’re in a position to waive your financing clause. That clause is there to protect you by ensuring you don’t run into legal trouble if you can’t obtain the financing you need. While some buyers are willing to forgo it to get a leg up on the competition (especially in downtown Toronto’s hot condo market), it’s not something you should do lightly. In other words: be willing to walk away from a deal—and mean it.

 

4) Form a connection with the seller

Sellers will almost always go with the offer that suits them best. That said, there are instances where it’s difficult to choose between two competing offers. In these cases, the seller will often go with the buyer who they genuinely like more.

It pays to be courteous. And if you discover that you share common values or interests with the person you want to buy from, don’t be afraid to have a friendly conversation. Just be cautious about getting too candid. You don’t want to reveal any information that might make it harder for you to negotiate.

 

5) Don’t expect to negotiate based on inspection results

An inspector will almost always find some areas that could be repaired or updated in a home. These issues are usually minor, and there’s no onus on the seller to perform improvements based on inspection results before selling.

For this reason, planning to leverage inspection results to get a lower price is usually a bad idea—especially in markets where there are sure to be many buyers who will purchase the place as is.

 

It pays to have the right guidance

Negotiating during the home-buying process can be complicated. If you want to work out an agreement that suits your needs, it helps to have an experienced real estate professional by your side. Would you like to learn more about negotiation tips before purchasing can help you get the best deal possible?

 

For over 30 years, our clients have trusted us to minimize risk, offer unbiased opinions, and ensure their best interests are served. Contact us today to talk about your needs, by emailing us at niels@christensengroup.ca or calling us at 416-441-2888 ext. 772.