First Timer Tips: The Art of Making an Offer and Negotiating

Posted by Annalisa Burgos | July 20, 2009

negotiating-an-offer-to-buy-a-houseI’ve never been a great haggler.

For most of my 20s, I accepted terms that were offered to me, not really knowing I could fight for what I wanted.

Perhaps it was my aversion to conflict (Libras like me seek balance, after all) or the ingrained, albeit naive, notion that people always offer a fair price.

Looking back, I wish I would have negotiated many more things in my life — career opportunities, salaries, boyfriends… but I digress.

As a first-time homebuyer, it is absolutely critical that you understand how to make a strong offer and how to negotiate with the seller to get terms you both can live with, especially if you really want the home.

Negotiating skillfully requires that you do your research — calculate the property’s fair market value from comps, understand the seller’s motivations for selling in this market, and know what concessions you are willing to make and what your deal breakers are.

Check your emotions at the door. Consider everything analytically, carefully, so you don’t get caught up in the heat of the moment and end up doing something you regret.

Think of this preparation as your training before you jump into the negotiating ring. Just because you’re in a buyer’s market doesn’t mean the seller is going to jump at your offer. You can safely assume that the seller has done their homework, so why should you come unprepared?

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