The goal of your negotiation is to buy a house for money you’re willing to pay, and if you get it for less than you were willing to pay, you have exceeded your goal. Decide on the highest amount you can afford, and try not to exceed that figure. Depending on what kind of market you’re in, strategy and tactics will vary. In a buyer’s market (i.e., there are more houses on the market than buyers looking), you have more possibilities to succeed. You can make a lower offer, ask for some additional home improvements, negotiate a better closing date, and possibly get the seller to pay more closing costs. In a seller’s market (i.e., there are fewer houses available, with more people looking than selling), you have less leverage, as you’re not the only one in line. You’re most likely to succeed by offering the list price. If they don’t get it from you, they will probably receive another offer soon from someone else. Sometimes it's a good idea to see why the seller is selling. Do they want to sell because they’re moving for a new job? Are they moving soon and thus “motivated sellers?” Has the property price been reduced due to an extensive time on the market? In most cases, it’s likely they’ll want to sell quickly. You can stand your ground if they have a counteroffer. If the house has been listed several times with a stable price, that’s a sign the homeowners are taking their time and might be waiting for the highest offer. Sometimes as buyers and sellers, we may forget the final goal: to buy and to sell. Sometimes, the parties get carried away in a battle of negotiating. Lock your eyes on the ball, but at the same time, be realistic in your expectations of the situation.
Hopefully, these ideas will help you to stay focused:
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