Negotiating is a major aspect of homebuying: the buyer wants to buy the house for the lowest price, while the seller is hoping to get the most. Ultimately, negotiating is needed to come to a compromise.
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Make sure your realtor has appropriate negotiation skills
Realtors are not required to take negotiating classes, so it is up to you to find out if your realtor has taken the proper steps to prepare for negotiating. This is vital due to the realtor being the primary voice between you and the selling party. You can find out if the realtor has negotiation skills by asking him the number of negotiations that he has conducted in his career and his negotiation process.
Find out as much as possible about the selling party
The negotiating process is very similar to the game of poker. The more you know about the opponent’s hand; the more successful you can become. By working with your realtor, you can find the answers to the following questions, which will give you an edge when negotiating the price of your home:
- How long has the home been on the market?
- Why is the home being sold?
- Have there been past offers on the home? Why weren’t they accepted?
- Have there been any price reductions? When did the last occur?
- What is the seller’s ideal moving date?
Send a letter to the seller explaining the benefits you bring to the table
By writing a letter to the seller, you can communicate reasons why they should accept your offer. When writing the letter, include the terms that you both agree on. Also, share with the seller that you have been prequalified for the loan.