When negotiating, arm yourself with information and knowledge and you will be well equipped to broker a fair deal. Find out as much as you can about real
estate law, the current market, and the other person’s situation. If you are buying the house find out why they are selling. Are they in foreclosure? Has something happened personally that makes them eager to get rid of the property at any reasonable price? Find out how long the place has been on the market, the number of other offers, if any, and at what amount. Is there outstanding debt on the home, and if so how much? Are they up-to-date with their payments?
Most sellers won’t just give out this information. Try to determine their status by giving up a bit of your own information first. Be careful about what you say because the seller might be able to use it when negotiating with you later.
When you are engaged with the other party in negotiating a contract, you’re trying to come to a mutual agreement on the price of the property and terms. Consider the area comps, true condition of the property from the inspection report, and seller’s situation. Before getting involved in any negotiation have your financing in place by being pre-approved. Before signing any written offers or contracts, seek legal counsel.
TIP: Make your offer in a non-round number. An offer of $233,200 vs. $230,000 might catch the seller off guard and leave them curious about what information you have that they don’t.
