Buying real estate: what negotiating margins will you be able to get in 2024? - News Hub

Buying real estate: what negotiating margins will you be able to get in 2024?

Between a sharp rise in lending rates, a drop in the number of transactions and a slump in new housing construction, the real estate sector has had a tough year in 2023. If the long-awaited drop in prices does not materialize, buyers can hope for good bargaining margins in 2024. months collapsed, but sellers did not reduce prices, which no longer necessarily corresponds to market reality, explains Aurélien Denechere, director of several agencies in the L’Adresse network. This context leads to negotiations.” According to a survey conducted by L’Adresse, 92% of the network’s agencies actually saw an increase in the negotiation margin at the end of 2023.

So what will the possible bargaining margins be for buyers in 2024? “There are three scenarios that allow us to estimate the average price reductions that property owners would be likely to agree to,” continues Aurélien Denechere. Let’s start with the first case. This is a property whose price has been correctly estimated by the owner or real estate agent, and which is located in an attractive area. In this situation, unfortunately, the room for negotiation is almost zero.

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Price reduction up to 10%

On the other hand, if the owner has slightly overestimated the price of his house or apartment, or has not updated the price of the property for several months, there is room for negotiation. “We estimate that it is possible to reduce the price of this type of property by 3 to 5%,” announces Aurélien Denechere. Let’s now turn to the third option. This is a property that has been available on real estate platforms for over a year. In this case, according to the history of transactions carried out by L’Adresse, buyers have the opportunity to receive a discount of up to 10%.

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As you understand, before starting any negotiations, it is essential to find out the average prices charged in the area where the property is located. You will thus have the opportunity to negotiate with the owner if the price of the accommodation does not correspond to the reality on the market. You can use property valuation sites that offer accurate and efficient tools such as Meilleursagents or Se Loger. You also have the option to consult the platform DVF Etalab, which allows individuals to know the sale prices of properties over the last five years. Finally, several sites such as castorus.com allow buyers to access the history of every ad on the major real estate sites. It is thus possible to find out whether the selling price of the accommodation has already undergone a price reduction since it was put on sale. This is crucial information because the seller will be more inclined to negotiate if the price of the property has not yet been revised downwards.

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