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1. First, realize that everything is negotiable, not just the sales price. That includes closing costs, closing periods, mortgage points, property repairs, fixtures and appliances, deed-recording fees, etc.
2. Get pre-approved for a mortgage. Any offer you make is stronger if a seller knows you already have lined up financing. A pre-approval also will give you a better sense of how much you can afford so you don't waste a lot of time looking at properties you can't afford.
3. Increase your negotiating power by entering the transaction as a firm buyer, meaning your current home is already sold or under a binding sale agreement. Come in clean and non-contingent - A seller doesn't want to accept something and then have it fall apart.
4. Sign a buyer broker contract with me since I am familiar with the market you're shopping in. Know that I am the person guiding you through the transaction and representing you and the not the 20 sellers whose listings you're looking at.
5. When touring a prospective home, never indicate in the presence of a seller how much you love the architectural design, the ornamental landscaping or the remodeled kitchen. This is a time to ask questions, not give away your level of interest.
6. I will find out the seller's motivation. It may be heirs trying to quickly dispose of a property, a divorce situation or a job transfer. Many people put their house on the market just to see what they might get for it.
7. Tour a home at least twice with me before making an offer - even if it is love at first sight. This helps keep the seller uncertain about the extent of your interest.
8. I will find out how much below list price homes in your desired area are selling for. What percentage of the asking price is the typical seller getting in this community? The figure usually runs from 93 to 97 percent, and knowing it gives you an idea of where offers ought to start and end up.
9. I will find out how long the house you are interested in has been on the market and whether there have been price reductions. Then I will find out the average listing period for homes in the area in your price range. That may give us an indication of how eager the seller is to compromise - and how much they have already come off their ideal sales price.
10. Keep in mind, sellers who've owned their home for 10, 20, or 30 years or more may be more flexible in price negotiations than someone who paid near their current asking price three years ago.
11. I will inquire whether any other offers have been made and why they were rejected. It may be a prospective buyer didn't like what turned up in the home-inspection report. I will ask to see any inspection reports that may have been done recently before we put an offer together.
12. Set your maximum price on a given house going in and stick to it. You are only undermining your negotiating position if you're prepared to waffle on that key point.
13. Always stipulate the sale is contingent on a home inspection, tally the estimated costs of all the repairs, and don't be shy about demanding that some, most, or even all be made prior to closing - even by sellers declaring the house is being sold in "as is" condition.
14. Use closing time for negotiating leverage. If possible, considering stipulating a 90- or 120-day closing period even if you don't need that amount of time to move in. Sellers anxious to close a deal in 30 or 45 days may make some other concession to win that one from you.
15. Be prepared to negotiate aggressively on "transaction costs" - appraisal and inspection fees, credit report costs, real estate transfer taxes, etc. These are usually split in some fashion between buyer and seller, based on local market traditions. Some sellers anticipating a six-figure sale price may give on these incidental costs.
16. Ask the seller to provide a warranty on the property. This written guarantee - typically a year in duration - safeguards a home's key mechanical components such as the furnace, hot water heater, dishwasher, oven, or range. A warranty serves as a security blanket, especially for first time buyers who often buy to their maximum and may not be a position to pay for unforeseen repairs.
17. As a defensive measure I will not discuss any particulars of your situation with the seller's agent to prevent them from knowing your level of motivation.
18. Tug at the seller's heartstrings. "Some sellers are so emotionally attached to their property, they just want to sell to nice people who their neighbors, who've been long-standing friends for 20 years, will like," If you're genuinely interested in a home, consider writing the seller a letter about yourself and family. For example, tell the current owner about your plans for the home or why it would be an ideal neighborhood to raise children. Sometimes for the seller, it's not always about dollars.
19. Continue looking at other houses and listings once you've made an offer, even if you think you've found your dream home. This helps maintain perspective during negotiations, and may even turn up a still dreamier house before you are committed.