When negotiating an offer there's a certain amount of strategy involved that can help you as the buyer get what you want in terms of price and conditions, or at least get you close to the mark. Let's explore some helpful negotiation tips.
Do some research on the seller. See if you can find out why they're selling and how motivated they are to sell. In certain situations, such as divorce settlements or estate sales, you know the sellers want the sale to happen, and so you may be in a better position as a buyer.
Before figuring out your offer, you'll want to know as much about the current market values as you can. Look at comparable properties in the neighborhood, and ask your agent to prepare a comparative market evaluation of the property. This will give you the recent selling prices for properties in the area you're looking in. Take note, when market values are rising there is some guesswork involved in pricing. All this research will help you put together a reasonable offer.
The standard contingencies that you can include and that won't raise any red flag concerns for the seller are financing and inspection. Just about every seller is going to expect these two conditions. Of course, to make the financing contingency go off as smoothly as possible, you'll want to have done your homework. Having a written letter of pre-approval from a trusted mortgage institution will give the sellers reason to trust the legitmacy of your offer, and your ability to finance it.
When beginning with the offer process make sure you write a clear and positive offer. This is more difficult than it sounds. What can tend to happen in the excitement of writing an offer, is that buyers don't read over what they' re submitting for clarity. Use your editing powers and remember that your goal when writing your offer should be to clearly cover all the essential elements so as not to give the seller any reason to need to counter offer. Make sure that the basics are there. Check that the address of the property in question is correct. Balance out your numbers and make sure that the earnest monies, loan amounts and balance of down payment all add up. Double check your closing date and possession terms to ensure they are correct. Review your offer and check whether any items are "red flags" and likely to raise shackles. Any wording for any terms or conditions should be worded in a clear and positive light.
Don't enter negotiations with only a single offer. If you really want to close the deal, be prepared with at least two other atrong offers.
If you cannot reach an agreement, attempt leave on a positive note and make your final offer standing at the door. Give the seller the impression that you're confident that there's no better deal. This can make the seller feel as if you're about to walk away from a great deal, that they just may not get from the next potential buyer.
