5 Ways to Negotiate the Best Possible Deal

[Jennifer Hashisaki]

Once you've found a property you want, the art of making it happen begins. Here are a few tips to help you at the negotiating table.

One of biggest myths in real estate is that all sellers are so desperate to sell their homes that they will negotiate any offer no matter how low. That may be true for some sellers but not in all cases. In Fact a low offer can even be seen as an insult in some cases. The art of negotiating a real estate deal in today’s market requires both skill and technique. To help you prepare for your next deal, here are five ways to negotiate a good real estate deal:

1. Do your research. Remember, information is power. Be Sure to collect as much home-specific, and local market information as possible when considering any property. For instance, you should know what other homes are for sale within a particular neighborhood and the amount of time those home have been on the market. Don’t forget to ask the seller why they’re selling the home and how soon they expect to move. You should also ask the initial purchase price paid by the seller and consider any upgrades which may have added value.

2. Keep a calm and clear head. In other words, never let the seller see you sweat. You may be extremely anxious to move into the seller’s home for variety of reasons. You may have had a difficult time finding a home close to your job. If you have children, you may have concerns about schools and enrollment schedules. Whatever the situation may be, make sure you remain calm and stay focused. Countless bad business decisions have been made when a buyer is not thinking clearly.

3. Keep your attitude in check. Often times, buyers will actually insult the seller by letting them know that their home is not worth the amount of money they are asking. While this is sometimes seen as a way to whittle down the price, it can actually cost you the deal if not handled properly. If there are obvious flaws with the home, discuss this matter politely with the seller, or through your real estate agent, and see if they’re willing to either repair the flaw or reduce the price. Remember, kindness goes a long way in real estate.

4. Establish rapport. This is a vital step in the art of negotiating. From the beginning, establish a good business relationship with both the agent and the seller. Have your finances in order so that you can move quickly if the deal calls for it. The whole idea is to show them that you’re qualified to purchase the home. This lets the seller know you are serious and financially prepared to make the deal happen.

5. Compromise. Remember, it’s rare for both parties (seller and buyer) to get exactly what he or she desires when it comes to buying or selling a home. Your ultimate goal should be to acquire the property at an agreeable price and under agreeable conditions. Thus both parties may have to make concessions to reach that agreement.

Remember, not every deal is going to be a good deal. The key to making a good deal is being aware and dynamic. This means being prepared to act if an agreement can be reached, or willing to walk away if need be. Do not let your emotions get the better of you, and do not settle for less than you are really willing to. Buying a home is like anything else. If you know what you want, and are willing to wait and work for it, you will find what you are looking for.