Tip #21 in our series of 70 ways to save money when buying a house is to talk to the sellers without the agents.



The best reason to do so is so the sale becomes less robotic and more personal. You wouldn't try to nickel and dime a friend would you? You want to talk to the sellers to show your human side. Get them to see it is more than just about numbers and money. Show them how much your daughter will love the backyard. Assure them that you will take care of the porch that they built by hand. Become their friends and the negotiations become easy. Do it properly and you will not even need the agents going back and forth about price. You will be able to do so over tea or coffee.

Real estate is almost a cat and mouse game. Besides presenting sellers with the fine print, negotiators and real estate buyers must be able to read their sellers. As we all know, agents are out to gain the most commission money they can. This spells higher real estate prices and at times, less favorable terms. More likely than not, the sellers themselves are more willing to provide you with better terms based on a combination of inexperience and pressure. Talking to the sellers themselves without the agents serves innumerable benefits.

The seller's motivations should always be taken into consideration. Sometimes, they could sway to your advantage in terms of better financial terms and a lower price. When dealing with sellers, try to figure out their reasons for selling, the price he is asking for, and the payment terms they are outlining. In addition, be on the look out for personal motivators. Sellers who want quick sales at a high price may be harder to sway, but those who are looking for a quick sale with rushed circumstances (i.e. relocation to a new job in another city) can be motivated enough to sell their home on your suggested terms.

When negotiating, listen to the seller. Notice the way he/she comes across with the sale of the property. If their speech is peppered with I want to get this over with or I want this done fast, stress and impatience can blind them temporarily allowing for you to go in for the kill. Use any information you can on the seller's motivations to get better terms. In the worse case scenario, the seller won't budge on a high price. In this instance, you can offer him that price but push hard to win other concessions at the very least. Sellers could be persuaded to pay for all closing costs and provide you with better payment options if they get the price they want.

In the art of negotiating, you have the power to downgrade a home. Always remind the seller of his home's negative features, but do it in a respectful way. Talk about the problems in terms of the market or the housing schemes that people may prefer. Although its carpet may be a ghastly purple and white, you will never tell your sellers that it is ugly. Instead, talk from a marketplace standpoint and comment on what you prefer. If you're buying a house for the purpose of renting it, tell them what tenants would prefer.

Many sellers are ready to negotiate. No seller will flat out agree with all of the requests you make. For this, leave room on the table to bargain. Even though price and financial terms may be the most important aspect of negotiations, minor issues like closing date and other can serve as a means of both buyer and seller making concessions. By exercising all of the above negotiating tactics, you stand a far better chance of acquiring the terms you want than an agent can ever achieve.