Category — Price Negotiation

Negotiation is the cornerstone of every home purchase. As a buyer, you always want to get a good deal, and as a seller, you want to make money on your home sale. However, negotiation doesn’t stop at price, nor should price be the driving factor. Focus on the terms of the sale and the other conditions and concessions you want, and be flexible with price. You can get a better deal that way, and you won’t risk offending the sellers or ruining your chances of other concessions that might occur if you push price hard up front.

It’s perfectly normal and understandable to want to get the best deal you can on your new home. As a home-buyer, you’ll want to get the lowest price, all of your concessions, favorable terms and all of the earmarks of a “good” deal. Unfortunately, if you push too hard to get your great deal, you may find yourself vulnerable to ill-will down the road. The deal isn’t over until you close on your new home, so don’t use up all of your goodwill during the negotiation process by pushing too hard for your dream deal.

Real estate agents can be great sources of information. Good agents can use their experience to give you valuable advice about price, neighborhood, comparable properties and even negotiating strategies. However, keep in mind that your agent is just an agent; even if you’re working with a buyers’ agent. Don’t give up your negotiating role or decision-making capabilities, or you may find yourself with a bad deal or a conflict of interests that creates a problem in your home-buying process. 

Many people believe that compromise is the core of the art of negotiation. Compromise may seem like the easiest solution when you and the seller can’t agree on terms or price, and because compromise is such a familiar concept, it’s often accepted. However, compromise can actually be detrimental in a home deal. If you learn to think creatively and focus more on terms, wants, needs, trade-offs and possibilities, both you and the sellers can benefit and you can get a better deal. 

Buying a home is a delicate balance between offer and counter-offer, revising the contract and negotiating terms until you find a magic combination that works for both buyer and seller. During this process, it can be easy to forget that you’re not the only person working with the seller, and yours might not be the winning bid. Don’t assume that just because you’re negotiating a contract, you’ll be able to buy the house. An offer is just an offer until you get the signatures on the contract.

Getting a good deal on a home is about more than finding a home that’s priced low and ready to sell. Price is only a part of the equation of getting a great deal. Strategically, there are things you can do to position yourself favorably as a buyer and get a positive reaction from the seller. Start by finding out what the sellers really want, and then use these strategies to get a better deal on your dream home.