Negotiation is the name of the game in real estate. Buyers want to negotiate the lowest price possible, and sellers want to keep the price as high as possible. It’s a little dance between the seller and buyer. Even though it is the norm for some form of negotiation to take place when buying a new home, we get that it can still feel like quite an intimidating experience. However, with a few strategies in place, it doesn’t have to be.

Why negotiate? Not to state the obvious, but negotiating can save you thousands of dollars, and it can lower your monthly mortgage payments. While it may seem overwhelming, it is in your best interest to get yourself the best deal possible. 

We have the top 4 tips for negotiating the price of a condo:

Work with an Agent

Real estate agents are experts in their field and will be indispensable when it comes to negotiating. Real estate agents know the market inside and out. With this knowledge they are going to know which offers will have a fighting chance of getting accepted by the seller and which ones may be a little too far out. Being someone on the inside, agents are also able to get in contact with the seller’s agent and see how motivated they are to sell. The more motivated the seller is to sell, the greater chance you have at negotiating. 

As a third party, real estate agents can remain neutral and professional, ensuring your offer is a viable option for the seller. Since agents are personally removed from the situation and purchase, they will act as a great non-bias sounding board throughout the process. Not only that, but they will act as the technical expert and help you understand all the real estate jargon being thrown around. Working with an agent who specializes in condos is going to be immensely valuable to you as someone who will negotiate on your behalf. 

Have your finances in order

You’re going to want to make sure you have your finances in order if you’re looking to negotiate the price. When you make an offer, especially if it’s a counteroffer, you’re going to want to let the seller know that you mean business. And in the world of real estate, to mean business means to have the money. Make sure that you’re pre-approved for a mortgage loan before you make an offer. Your pre-approval letter will confirm the mortgage you qualify for. 

Go into the process knowing your bottom line and what you can and can’t afford. This is going to help in the negotiation process once you know what monetary ballpark you’re playing in. 

Know the market

Knowing the market is going to let you best play the negotiation field. Whether you’re in a seller’s market or a buyer’s market will dictate how much room you have for negotiation. If the condo you’re looking at has a lot of interest, there is a greater chance that there will be multiple bids on the place and less room for negotiation. On the contrast, if it’s a buyer’s market and there is not as much interest, you have a greater chance to negotiate the price. 

If the condo has been on the market for a while, there is also greater chance to negotiate. A buyer’s market will allow for more aggressive negotiations, while a seller’s market may require a more conservative negotiation approach. This is why having a real estate agent is going to be crucial so they can help determine an appropriate negotiation strategy for the current market. 

Do a little homework and see what other condos in the building or in the neighbourhood have recently sold for. Use this as leverage when it comes to negotiation. 

Be ready to walk away 

Like anything, sometimes you just have to know when to walk away. You may run into a seller who has zero interest in negotiating their price, regardless of how long the place has been on the market or if there has been little to no interest. On the flip side, the market is hot and there is lots of interest on the place, know what it may look like if you go into a bidding war, and where you draw the line. It may be tempting to keep upping your offer but don’t be afraid to walk away to stay within your budget. 

One of the best things you can do is go into the whole home buying process with the mindset that you may have to walk away from a few places. Know when to hold them and know when to fold them. Or in this case, know when to compromise or know when to walk away. If you and a seller are able to compromise, know that this might come with a bit of back and forth. Especially if it’s a hot market. 

And some extra food for thought; when it comes to getting into your condo, there are countless other things that can be negotiated. While it may not be the listing price, the other terms you negotiate will still benefit you. 

Other negotiable considerations:

• Closing date
• Inspection timeframe & costs 
• Minor repairs 
• Professional cleaning 
• Existing appliances/furniture etc. 
• Closing costs and other various fees 

Final Thoughts 

Negotiating the price of a condo can feel daunting and overwhelming. But the good news is, it doesn’t have to be. Having a strategy in place will help keep stress levels low and your head on straight. Get yourself a knowledgeable agent, have your finances in order, do your homework, and know when to walk away. With these steps in place, you are well on your way to getting the best possible deal on your new condo.