I’m a Real Estate Agent: My Trick To Negotiate 20% Off the List Price

Originally seen on nasdaq.com

July 07, 2024 — 10:00 am EDT

Written by Gabrielle Olya

Luxury real estate agent and former cast member of Bravo’s “Million Dollar Listing New York” Kirsten Jordan knows how to negotiate the best price for her clients — and there is one specific trick she uses to do it. Jordan says the best way to negotiate down the price is to “read the kitchen,” a tool she has used to negotiate 10% to 20% off the listing price.

Here’s exactly how she does it. When you’ve finished reading, also check out several ways that people hurt the value of their homes.

How I ‘Read a Kitchen’

Jordan always looks at the kitchen first when deciding if a list price is fair or not.

“The kitchen is the highest-value room in the house,” she told GOBankingRates. “If work is needed, it’s also going to be the most expensive to update, and the time, money and effort needed to pull off a renovation will deter a large portion of buyers. The sellers know that — and they’re probably hoping you don’t.”

After viewing a kitchen, Jordan will explain to her clients exactly what needs to be done and how much it can cost.

“I make a list of items we see that will need work and attention,” she said. “We then approximate an estimated cost for a renovation to help understand what is fair market value for the home given the work needed. In some cases, I have negotiated 10% to 20% off the asking price for clients, just from the kitchen alone. Bathrooms are just as readable.”

What To Look for When Reading a Kitchen

Jordan knows to look out for signs that a home is priced too high based on the current state of the kitchen — even if it looks brand new.

“When a home has a brand new, on-trend kitchen and is priced at the top of the market, I make sure to read that kitchen closely,” she said. “Did they renovate to sell? You can tell by the quality of the materials and construction. Maybe it’s because of social media but Americans have become too focused on what’s trendy. Quality should be your first priority. Quality retains value.”

One area to pay close attention to is the cabinets.

“Look at the kitchen cabinet’s quality,” Jordan said. “Is there dovetailing? Are the drawers soft-close? Is there a maker’s mark? If not, they’re probably builder’s grade — that means particle board construction and wood veneer cabinet faces, which don’t wear well. The kitchen might look great today, but in four years you’ll need upgrades and if it’s not your aesthetic there’s no way to refinish — you’ll need to rip it all out. That kitchen could cost you thousands more in the not-so-distant future.”

Another thing to take into account is the appliances.

“You can tell a lot about a seller from the quality of appliances they’ve selected,” Jordan said.

She recommends using AI to determine the quality of the kitchen appliances.

“Your phone now has a visual look-up feature where you can snap a photo and search it using AI,” Jordan said. “Use this tool to look up the appliance, quickly find reviews and see if there’s a Reddit thread about issues with the components. If you want to go really deep, search in Google News for information about any recalls. You can also buy a $30 subscription to Consumer Reports. Their expert team tests all the appliance brands for you and then provides unbiased reviews.”

Watch Out for These Kitchen Red Flags

Sometimes the kitchen upgrades needed are relatively minor, so it’s still worth buying the home with a negotiated sales price. Other times, it’s better to just walk away.

“The worst-case scenario is a total kitchen overhaul that involves structural work,” Jordan said. “If that’s not what you want, then walk away even if the seller will negotiate. And if the seller won’t budge on price and you can’t stomach the renovation cost on top of the home purchase, then you know it’s not in the cards for you. Being a kitchen reader means you are an informed buyer, and informed buyers make good decisions. Having the insight to walk away is actually a gift.”

Jordan recommends utilizing an inspector to help you identify any red flags that could be found in a kitchen.

“Be on the lookout for structural issues, especially if the seller opened up walls to create an open-concept kitchen,” she said. “Sometimes, structural beams need to be added, and that’s not a cheap fix.”

Jordan also said to always look under the sink.

“Plumbing issues are notoriously expensive and the state of the under-sink is a microcosm for the entire home,” she said. “Issues here tell you a story about DIYS, flooding, cheap fixes and more. You want to see a clean, tidy well-kempt under-the-sink situation.

“Inspect closely for signs of rust, wear and water damage,” Jordan continued. “How is the water pressure? Does the sink drain quickly? Are there stains under the cabinetry? Is there a patchwork of plumbing parts and dark spots? Are there odd sounds when using the sink or faucet? These can all indicate water damage and cheap repair work.”