How to Negotiate with Sellers

Buying a home is one of the most important purchases most people will ever make. To ensure you are making the right decision the first time, potential buyers need to be prepared. Consider the following before beginning negotiations:

Be prepared: Research the housing market in your target area. Once you have information about the general area, focus on the particular property and the seller.
Look for answers to questions such as:
1. Why is the homeowner selling? (If they're moving because they find the area undesirable, you might want to consider this issue.)
2. How long has the home been on the market? (If it has been on the market for a long time, perhaps there are negative facts about the property that you need to know.)
3. How much did the seller pay for the home compared to the current asking price? (If the seller paid more, find out why. Was it a general real estate trend, or did property values in that particular neighborhood go down?)
4. What is the seller's time frame for selling and moving? Does it fit within your needs?
5. Are there any defects in the home or problems with the surrounding neighborhood? (For example, is the roof so old that it will likely leak during the next storm? Is there a new construction project in the area that will lead to major traffic congestion?)

Keep your cards close: As the potential buyer, you want every advantage. While you want all of your questions, to the seller, answered, reveal very little about your current circumstances. Do not reveal personal information such as your income, the maximum you are able to put down for a down payment on the home, or when you are ready to move. An experienced agent knows not to reveal this information to potential sellers when representing you.

Most importantly, never let the seller see how much you want the property. If you appear desperate or overly enthusiastic, the seller knows that they have the upper-hand and a stronger bargaining position. Remember, when meeting with the seller or listing agent, keep your emotions in check.

Establish a Timeline: Find out if the seller needs to have the sale closed sooner rather than later. If the seller is feeling pressured to sell, use that to your advantage in negotiating. Even if you, the buyer, are the one with the deadline for purchasing a home, don't let yourself be rushed into making concessions or a purchase you may regret later.

Above all, don't panic. An experienced real estate agent knows how to negotiate in your favor, as well as, the ins and outs of the buying process.

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