About Real Estate Negotiation

You want to get the best deal whether you're buying or selling real estate, and you know that negotiations are commonplace. Even if a real estate agent represents you, she can only offer advice; she can't negotiate for you. The offers and counter-offers made are solely your decision, but there are general guidelines that will simplify the process.

Legalities

Real estate contracts must be in writing to be enforceable. Although you can make or receive a verbal offer and perhaps even purchase property that way, you have no legal protection if the transaction is ever contested. An offer is not a contract until both parties sign the document. In addition, both parties must be over 18 and of sound mind.

Preliminary

Pricing your property is an art. If you price it too low, you undercut your profit but if you price it too high, you risk not getting any offers. Do your homework by finding out what similar properties are selling for and price yours no more than 5 percent above the actual market value of the home.

Offers

When you're the buyer, you want to get the property at the lowest price you can--but you must consider the current housing market. In a booming market, homes may sell for the full asking price soon after listing. When the market is slow, a seller is more likely to negotiate if you bring a lower offer. If you make a very low offer, you risk insulting the seller, who may then refuse to negotiate. A real estate agent can advise you of the market value of the property.

Process

Once a potential buyer makes an offer on the property, the seller may either accept the offer or make a counter-offer. The ball is now in the seller's court and if the offer is good, he may decide to accept it and sign the contract, binding both parties. If the offer is too low, the seller can make a counter-offer, realizing that the buyer is free to walk away at that point. The buyer and seller may negotiate the amount of earnest money, the closing date, who is responsible for repairs and any other item as long as they put it in writing.

Considerations

You may negotiate for virtually anything as long as it is legal. For instance, you may not make or accept an offer to sell your real estate for illegal drugs, but you can legally trade it for a cow, a vehicle or another piece of real estate.

Potential

Normally, anything permanently attached to the property is considered as part of the transaction. But if you want the refrigerator, the curtains or some of the furnishings, you must address each one in the offer.

Resources

• Find a Realtor near you.
• Use an online form to make an offer on real estate.