For most people, a home is the most expensive investment they'll ever make. And it's definitely a worthwhile investment – after all, you'll build equity as you pay off the home, rather than throwing away money on rent every month. However, that doesn't mean that you shouldn't try to save a little money on the deal if you can. Many home buyers don't realize that if they can sweeten the deal for the seller, they may be able to get the home they want for less than the asking price. Here are a couple of ways that you may be able to get a discount on your dream home.
Offer to Rent Back to the Seller
Find out if your seller has purchased a new home yet. If the answer is no, it's likely that they need the equity from the home they're selling in order to be able to buy their new home. But that also means that they're going to have to move twice – once when you move in and then again when they find their new home.
Offer to buy the home and rent it back to the seller while they secure their new digs. You'll save them a lot of trouble and the expense of renting a temporary home, and it won't cost you anything but time. You can subtract the rent from the cost of the house, and you can ask for a discount for the inconvenience to you and the extra convenience for them.
Speed Up The Closing
On the other hand, if your seller already has a new home, they may be dying to unload the old one as soon as possible. Two homes means two mortgages – the seller is losing money every day they wait to sell the old home.
Offer to close in 30 days instead of 60 or 90, on the condition that they take a lower offer. If the seller is in a hurry to get rid of the first home and the second mortgage, it may be worth it to them to take less money.
Provide Something Unique
Is there something other than money that you can offer that other buyers probably can't offer? When the owner of a pizza restaurant in Oregon wanted to buy a hot property, she offered the sellers free pizza for life, among other things. And it worked.
You may not have an unlimited supply of pizza to offer, but take some time to think about what you do have. If you're employed in an in-demand field – for example, if you're a dentist or a plumber – you may be able to offer a deal on your own services for free or at a deep discount. Be creative. It never hurts to make an offer – the worst they can say is no.
Not only can these tactics help get you a discount on you new home, they may give you the edge if the home is in high demand and you find yourself in a bidding war. Not only do these offers benefit the seller, they also give your offer some personality, making you stand out from everyone else. Talk to your real estate agent about the best way to make an unusual offer to the seller.