5 secrets to buying your dream home for less

When it comes to house hunting, the asking price is rarely the one actually paid. If you're hoping to buy a house for less than what’s posted, keep these tips in mind before making an offer and you could wind up getting exactly what you want!

Even if you’re not a natural-born haggler, it’s possible to approach your house purchase and the offer-making process in a smart, thoughtful way. You might be surprised at your success! So, what are the five secrets to get you into the house of your dreams at a price you can afford?

Let’s say you visit a property you adore, should you show your enthusiasm? Maybe not, especially if the seller is present.

• If you are walking around declaring your undying love for a house, the seller is going to know that you’re probably willing to pay to make it yours. Do your best to keep your cool.

If the neighbourhood where your dream home is located is selling comparable houses for under the asking price of the house you’re after, you’re in a good position to offer a lower amount and hope for success.

• Understanding the market in your area will help you know when you're getting a good deal, or offering too much.

Because it’s so common for buyers to put in an offer that’s under a house’s asking price, sellers often pad the asking price by five to 10 per cent.

• Knowing that this is common practice, it’s not unheard of to make an offer that is a similar percentage below the asking price.

If your offer is too low, the seller may be insulted and refuse to respond with a counter offer. Meaning you’ve completely lost your opportunity to negotiate.

• If your research of the area reveals that the property is fairly priced, don’t go too much under the listing price. You’ll be much more likely to be taken seriously by the seller.

There are particular situations when a seller is likely to be very receptive to offers that come in under the asking price. Look for these instances to maximize your chance of success. They include:

• Houses that have been on the market for a long time. This can be a good indication that others think the house is overpriced, so the seller might be open to any offer he or she can get.
• A seller who is making a major life change. Someone who has taken a job in another city, is going through a divorce, or needs to sell in order to buy a new house is more likely to be flexible about the asking price.
• If your timeline suits the seller’s. If you are in a situation that allows you to be flexible about when you close on the house—let’s say you are currently renting and can move at any time—a seller is more likely to work with you on price.

Whatever happens, do your best to be patient and don't get discouraged if you try to buy at a lower price and things don't work out. Another house will come along—one you may love even more!

Because buying a home is likely the biggest investment you'll ever make, the last thing you want is buyer’s regret. So take your time and enjoy the process as you search for your dream home. When you finally find the perfect place and sign the contract, you'll be glad you did.