Negotiation strategies for getting the best deal on real estate

While finding the perfect home is important, negotiating the best possible price is critical. When negotiating effectively, you can result in substantial savings, possibly amounting to thousands of dollars. Utilize these savvy tactics when bargaining for your dream home. Being well-informed gives you power when negotiating. Research similar properties recently sold in the neighborhood. Look at the listing price versus the final sold price to see how much below asking buyers were able to negotiate. It provides a reasonable range to aim for. Also, study overall real estate market conditions in the area. If supply is higher than demand, or if a home has been sitting for a while, the price is usually lower. Understand factors impacting pricing so you can use them to strengthen your position.

Get pre-approved for a mortgage

Sellers take buyers more seriously when they know they are qualified and ready to move forward. Before house hunting, talk to lenders and get officially pre-approved for a mortgage. It shows you’re a serious buyer who has their finances in order. Secure the best possible interest rate and terms you qualify for too. If the seller counters with a mortgage through their preferred lender, you show you already have superior financing lined up.

Your first offer is your chance to anchor negotiations below the asking price. Price aggressively but within reason, based on your research of recent comparable sales. Submit the offer in writing with a firm expiration date to pressure the seller to respond. For example, if similar homes sold for $50,000 under the listing price, offer $40,000 to $45,000 under and make the seller counter. You strategically increase your offer while still aiming under market value.

Outline desired concessions

Beyond the purchase of Koh Samui real Estate price, your first offer lists any concessions you hope to secure. It includes requesting the seller pay transfer taxes, all or part of the closing costs, home warranty fees, inspection costs, or other expenses. Detailing desired concessions upfront gets negotiations flowing. The seller may accept some items, and counter on others, but it gets your wishes on the table early. Cash deals go beyond just the sale price. Indicating you are open to negotiation and compromise increases the chances of securing an agreement. Respond professionally to counters by adjusting your price and concessions, and reiterating inflexible areas.

Play hardball strategically

At times in the negotiation, you do need to play hardball and stand firm. Choose your battles wisely for when you dig your heels in. Tactically take a hard stance on must-haves like the inspection, appraisal contingencies, or closing date. Lay out why those terms are non-negotiable because they directly impact the safety of your investment. Just don’t take an unreasonable hard line on every issue. If needed as negotiations stall, sweeten the deal by offering a higher price or concession to seal the agreement. For example, you could increase the initial offer, offer a shorter contingency window, or agree to lease the property to the sellers. Having some extra bargaining chips handy to add value for the seller keeps negotiations moving toward an accepted offer. Keep a few concessions in your back pocket for when they have the greatest impact.