Tips for Negotiating with Home Sellers

If you’ve engaged a real estate agent to help you buy a new home, then you probably aren’t too worried about the negotiation process. An experienced agent knows the ins and outs of negotiating on your behalf to get you the best possible deal. However, there are some things you can do to position yourself as a strong buyer:

Get pre-approved for a loan. Getting pre-approved for a mortgage loan not only helps your agent know how much you can spend, but is also a signal to a seller that you are serious and ready to buy.

Have your agent do some homework. Try to find out if the seller has any pressure to sell such as a relocation date or if they have certain terms they want buyers to meet, such as a firm closing date.

Prepare the offer. Before you make your offer, your agent should have pulled up comparable home prices in the neighborhood to ascertain the price per square foot. He or she should also learn if there are other offers since competition may lead you to increase your offer price. You also need to be aware of any necessary repairs or problems that the homeowner would have disclosed on the seller’s condition of the property document.

Make the offer. You want your offer to be clear as far as the terms the seller will need to meet, including repair requests, closing dates, etc. If you can be flexible on these, your offer may stand a better chance, especially if your competition is not as flexible. Your offer should not be so low as to be insulting to the homeowner or stipulate too many concessions.

Negotiating after the inspection. While no home is perfect, there could be something unexpected that shows up in an inspection that can lead you to reconsider. Usually these issues can be worked out by negotiating in good faith with the seller. However, if the repairs needed are major and the seller won’t agree to perform those repairs, you will need to consider if you love the house enough to make them yourself or walk away from the deal.