How to Negotiate Price in Real Estate

An easy introduction to negotiating price in a real estate deal.

Instructions

1. Learn and use the basics of real estate negotiations. For example, get the seller and bank to invest their time. Time is on your side when the other party is using it. Always ask why and you will be told what will make the deal. Be prepared to walk away. Have alternatives, and you can take a big risk in pricing.

2. Determine market conditions. Know what is going on in your market. Go online. Find out what the real estate writers are saying. Talk with at least three different agents. How high is inventory? Are multiple offers common? Talk to a mortgage broker and find out how mortgages are being processed. Do your homework.

3. Get a feel for price points and find a real estate agent who have a feel for price points. Find the "highly motivated seller". That means they have to sell. If you are a seller, do not tell people or your agent that you are motivated. Smart buyers look for deal with the motivated seller.

4. Know the house you are interested in well. Is the gem of the neighborhood or the dog? You can bargain down a dog that may need only cosmetic work. Don't waste your time bargaining in a seller's market but take full advantage of a buyer's market. There are no rules how far down you can go in an offer.

Tips & Warnings

• Spend some time learning the basics of negotiating. It won't be wasted.

Resources

• Successful real estate negotiations.
• Sell your house quickly.