Already have your sights set on your dream home? You might have an ideal one in mind probably because of a home improvement show episode you’ve seen on cable tv or have visited a friend or a family member who has just hosted a house blessing event in their new homes. Thanks to a plethora of buying opportunities in the real estate market today, getting a higher-quality home at a more affordable in this market is much more realistic.

Here are eight ways to negotiate an affordable price for your dream home.


1. Set a realistic budget first. Make sure you can afford to keep up with payments.

Your budget would usually be determined by the amount that you have allotted for your new home or the proceeds of your housing loan. Silicon Valley blogger and finance expert Finn Lane of cautioned that the budget set aside for your new home must be the maximum cap. This means that you need to think conservatively when taking into consideration other expenses aside from the home or condo unit’s purchase price.

Moreover, Filipino finance guru Francisco J. Colayco said that you also need to consider how much from your family monthly income could be allocated for the installments. Rent, transportation, and food expenses should not exceed 60% of the total family income, and that almost half of that would normally go to rent.

2. Deciding on your dream home should always be a family affair.

Will your family be comfortable living in a single-unit housing development, apartment or townhouse complex, or in a unit at a condominium project?

Determining the type of housing your family needs is important as getting financing to purchase the property. If your family has senior citizens or new babies, it would be also best to get their opinion on what they would like to have in their new home. This means taking into consideration the noise levels surrounding the area of your potential new home, common areas, features for disabled people, accessibility to schools, hospitals, 24/7 clinics, and so on.

You can ask your family to draw up a wish list that you can consider in choosing your new home to aid you with the home selection and the price negotiation.

3. Hire a real estate broker to help facilitate the process.

The broker’s industry and market knowledge of properties in the area along with his experience in sales negotiation will help you in purchasing your home, especially on a budget. For one thing, the broker can either provide more options beyond the scope of your initial research based on the wish list you and your family have drawn up.

When purchasing pre-selling condominium units, for example, the broker has knowledge on which developers have the best track record in the industry in terms of property development turnovers within predetermined dates. Also, the broker will definitely be knowledgeable of sales discounts that you could avail as a homebuyer.

4. Pay attention to details.

When doing oculars, you may want to consider choosing units that has value-adding features apart from meeting your needs. recommends purchasing a condo unit that has a handsome view or that has a parking space, for example.

Personal finance blogger James Ryan Jonas of recalled a friend who paid P2.5 million for a condo unit near McKinley in Bonifacio Global City back n 2007. It is unclear whether his friend had sold the place, but claims that the value of the unit jumped 40% to P3.5 million in just a year after purchase.

According to the Philippine Daily Inquirer, the legal office of the Housing and Land Use Regulatory Board recommend buyers to request the property’s documents from sales agents or from the developers. Reviewing these documents is one way to protect yourself from developers who have unreliable turnover track records. The papers also offer a trove of information that you can ask your real estate broker as a negotiation talkpoint.

Sales Negotiation

5. Ask the right questions.

It is innate in our nature as Filipinos to get the best deal there is for a specific price. Ask your real estate broker whether the price offered on a prospective property is the best price he can get for you. There are instances wherein your broker or agent would suggest purchasing a property that offers the biggest deal for a slight increase in price. Lane wrote that her family decided to purchase a property that is 125% of their budget, but got a good deal out of it because their new home is 40% more spacious than their original preference.

On the other hand, it would also be best to compare prices with other clients in the area. This would offer you another talking point during the price negotiation.

6. Offer a bigger down payment in cash.

The amount recommended to pay as down payment is 10% or 20% for pre-selling properties. However, your broker may be able to work on a discount from the developer if you could offer a higher cash down payment. Chances are, the developer will be able to lower your monthly installment and monthly amortization, Rappler said.

7. Concessions

This is the time that you consult with your family’s wish list and see whether you could come up with a competitive price without some of the features. In advance of the negotiation, it would be best to go over the list after doing the oculars to ensure that you sacrifice your family’s wants and retain your needs in a home if it comes down to pricing.

8. Time your offer

The best time to get a discount on your property purchase is close to the turnover date. This is usually the time wherein the developer will be more inclined to sell the remaining properties as the turnover date approaches. Moreover, it is also suggested in a Consumers Report blog post that successful negotiations usually happen when salespeople have more time to work out a good deal.

Do you have any other tips that you could share to our fellow readers on how to negotiate an affordable price for a higher-quality home? Leave them below.

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