There is an old saying that goes, "A good deal is when neither side got everything they wanted, but both sides got more than the other wanted to give.
"This is certainly true when you are negotiating to close a real estate sale, whether you are the buyer or seller.
Give and take is part of the game in order to close the deal, and both sides will usually make concessions in some areas in order to gain what they want in others.
Because real estate is a substantial investment, it's important that you learn basic negotiating skills early on.
The most important tools you have when negotiating for real estate or knowledge of the property and an understanding of the situation the seller is in.
If you have a grasp of these two key elements, you will be armed with the weapons needed to negotiate a solid deal.
Take the time to find out what the sellers' situation is before making an offer on any property.
Are they selling because they have been transferred to another job?This means they may be anxious to sell quickly.
Are they close to foreclosure?Then they have an added incentive to get rid of the property fast to salvage their credit rating and save on mortgage payments.
Other information that can put you in a more powerful negotiating position can be if they house is actually theirs or if they are selling a house that is part of an estate they wish to close, whether the property has lingered on the market for months, and how many times the property has been reduced in price.
All of these bits of information can give you some leverage in making an offer or asking them to pick up closing costs.
After all, if they just want to get the sale over and done with, they may be open to all kinds of suggestions.
You may not be able to find out all of this information, but if you are in conversation with them and visit the property more than once, showing a real interest, you'll be surprised by how much you can find out simply by making conversation.
If you share a bit of your own personal story, you may learn quite a bit of theirs.
Familiarizing yourself with the property and the neighborhood is also essential.
Talk to the neighbors and get a feel for what other houses on the street are going for.
If this is an area that's on its way down or has slowed on the market, you can mention this when negotiating a price.
Explain your fears that the house may depreciate in value, but that you really like it.
The sellers will realize that you are aware that the home may not be a goldmine and may adjust the price accordingly.
Knowing the house itself is perhaps your most powerful negotiating tool.
Get a professional inspection with a written report.
There is nothing more powerful than an official report that states that the roof needs repaired and the basement has problems with dampness.
Sellers can't dispute this like they would if you simply said, "I think I'll need to replace the roof," which is just opinion.
You can then negotiate one of two settlements - the sellers can either have the repairs done at their expense before the closing, or they can deduct the cost of the repairs deducted from the asking price (be sure to get bids from professionals for this).
If you've been pre-approved for the financing before you make an offer on a real estate purchase you are negotiating from a position of real strength.
The sellers don't have to worry about whether your financing will come through.
Many sellers would rather take a slightly lower guaranteed offer than wait for weeks or even months to find out if another buyer's financing will be approved.
When you make an offer, never say, "This is my only offer.
"Instead, offer a figure that gives you some wiggle room.
Most sellers feel cheated if they don't have the opportunity to counter with another price and then haggle a bit with you.
It doesn't matter if your first offer was a fair one or not - it's the psychology of the sale that matters.
Finally, have everything reviewed by someone knowledgeable in financing and mortgages before signing on the dotted line.
If you handle negotiations properly, both you and the seller will walk away satisfied.
"This is certainly true when you are negotiating to close a real estate sale, whether you are the buyer or seller.
Give and take is part of the game in order to close the deal, and both sides will usually make concessions in some areas in order to gain what they want in others.
Because real estate is a substantial investment, it's important that you learn basic negotiating skills early on.
The most important tools you have when negotiating for real estate or knowledge of the property and an understanding of the situation the seller is in.
If you have a grasp of these two key elements, you will be armed with the weapons needed to negotiate a solid deal.
Take the time to find out what the sellers' situation is before making an offer on any property.
Are they selling because they have been transferred to another job?This means they may be anxious to sell quickly.
Are they close to foreclosure?Then they have an added incentive to get rid of the property fast to salvage their credit rating and save on mortgage payments.
Other information that can put you in a more powerful negotiating position can be if they house is actually theirs or if they are selling a house that is part of an estate they wish to close, whether the property has lingered on the market for months, and how many times the property has been reduced in price.
All of these bits of information can give you some leverage in making an offer or asking them to pick up closing costs.
After all, if they just want to get the sale over and done with, they may be open to all kinds of suggestions.
You may not be able to find out all of this information, but if you are in conversation with them and visit the property more than once, showing a real interest, you'll be surprised by how much you can find out simply by making conversation.
If you share a bit of your own personal story, you may learn quite a bit of theirs.
Familiarizing yourself with the property and the neighborhood is also essential.
Talk to the neighbors and get a feel for what other houses on the street are going for.
If this is an area that's on its way down or has slowed on the market, you can mention this when negotiating a price.
Explain your fears that the house may depreciate in value, but that you really like it.
The sellers will realize that you are aware that the home may not be a goldmine and may adjust the price accordingly.
Knowing the house itself is perhaps your most powerful negotiating tool.
Get a professional inspection with a written report.
There is nothing more powerful than an official report that states that the roof needs repaired and the basement has problems with dampness.
Sellers can't dispute this like they would if you simply said, "I think I'll need to replace the roof," which is just opinion.
You can then negotiate one of two settlements - the sellers can either have the repairs done at their expense before the closing, or they can deduct the cost of the repairs deducted from the asking price (be sure to get bids from professionals for this).
If you've been pre-approved for the financing before you make an offer on a real estate purchase you are negotiating from a position of real strength.
The sellers don't have to worry about whether your financing will come through.
Many sellers would rather take a slightly lower guaranteed offer than wait for weeks or even months to find out if another buyer's financing will be approved.
When you make an offer, never say, "This is my only offer.
"Instead, offer a figure that gives you some wiggle room.
Most sellers feel cheated if they don't have the opportunity to counter with another price and then haggle a bit with you.
It doesn't matter if your first offer was a fair one or not - it's the psychology of the sale that matters.
Finally, have everything reviewed by someone knowledgeable in financing and mortgages before signing on the dotted line.
If you handle negotiations properly, both you and the seller will walk away satisfied.