3 Tricks to Get a Seller to Lower Their Asking Price

The National Association of Realtors (NAR) reports that the median price for an existing home sold in March was $375,700. That's a decline of 0.9% from a year prior. But let's remember that home prices were also very elevated in early 2022, so a modest dip does not by any means make today's home prices affordable. 

A big reason sellers are asking for higher prices these days is that real estate inventory is very low. As of late March, there was only a 2.6-month supply of homes on the market, per the NAR. And it can easily take a four- to six-month supply of homes to even out the housing market and make it so there's enough inventory to go around. 

If you're looking to buy a home, you may end up finding a place that's suitable in theory, but is just outside your price range. And because mortgage rates are higher these days, you may not have the leeway to pay more. 

If that's the case, all isn't lost. You might still be able to negotiate with a seller and get them to come down on price. Here are three strategies you can use.

1. Offer to pay in cash

It may be that your preference is to finance your home purchase with a mortgage loan, but you have the option to make a cash offer thanks to a lot of savings or something like an inheritance. If so, you might manage to get a seller to lower their price if you agree to pay in cash. 

That's because cash transactions are more of a sure thing. Your seller won't have to worry about your home loan falling through, nor will they have to worry about delays in finalizing your mortgage. 

2. Point out flaws -- politely

No home is perfect. But if you're looking at making an offer on a home that clearly needs some work, you can use that as a talking point when negotiating price.

Be careful, though. Many sellers take pride in their homes, and you don't want to come off as insulting. 

When you highlight a home's flaws as a negotiation tactic, do so gently and discuss things from a financial perspective, not an aesthetic one. In other words, rather than point out that all of the flooring needs to be replaced because it's worn and dingy, simply discuss the cost involved in having to update it.

3. Tug at your seller's heartstrings

Perhaps the neighborhood you're looking to buy in is perfect for your family, and you can see your kids really enjoying their childhood in the home you're thinking of buying. If you try to appeal to your seller by stating all of that but explaining that the home is just a bit outside your budget, they may agree to a reduction in price.

Although sellers continue to have the upper hand in today's housing market, that doesn't mean you can't negotiate at all. So if you find yourself in a situation where you want to make an offer on a home but the price doesn't quite work for you, use these tactics to see if you can get that number lowered.