9 Negotiation Tips to Get the Best Deal

When it comes to buying a home, your negotiation smarts can go a long way toward protecting your

best interests and your cash. Here are 9 critical negotiation tips to help ensure you’re getting

the best deal:

 

  1. Set your priorities early

 

Knowing what’s really important early on is

critical to getting a great deal. Ultimately,

the bar for whether your negotiation is

successful is determined by what the home

and contract terms are worth to you.

 

  1. Know your local environment

 

The best negotiators are the most informed.

To get the best deal when buying, ask your

agent to provide data on these critical local

factors:

• Recent sold prices for similar homes

• Average difference between asking

and sold price

• Average days on market for similar

Properties

  1. Get the inside scoop

 

Don’t make a blind offer. Make sure you

ask your agent to explain market data

and how the numbers relate to your transaction.

In addition, he or she may know

valuable transaction specifics that can

strengthen your position, like whether or

not the sellers need to move quickly.

 

  1. Bond with your bank

 

Too often transactions fall through at

financing. Work in advance to make

sure your deal doesn’t die at closing.

For buyers this means working with

your agent and mortgage broker to

secure back-up financing in case things

go awry with your first loan.

 

  1. Problem solve for all parties

 

Traditionally, negotiations were a twoway

power struggle between buyer and

seller. Now, buyers have to consider

banks, appraisers, and sometimes

even property associations that all

have their own guidelines and needs

that impact the terms of the deal.

It’s more important than ever to

approach your negotiation as an exercise

in problem solving with the aim

of meeting the needs of as many

parties as possible.

 

        6. Act quickly – not impulsively

 

W hen you find ‘your’ place, make an offer.

When you get a counteroffer or response, respond

to it. In real estate, time is always of the

essence, and prolonged hesitation often results

in lost opportunities.

There’s nothing wrong with sleeping on a decision

overnight, if the ‘right’ move is unclear. But

keep in mind, there are competing buyers and

changing interest rates lurking, which can change

the whole bargaining dynamic at any minute.

 

  1. Minimize time pressures.

 

When buying or selling a home, moving deadlines

can cost you thousands of dollars and

cause you to make needless compromises

because you’re in a rush.

When buying or selling, here are a few ways

to buy yourself time:

• Plan and search early when possible,

• Locate temporary rentals, and

• Develop a plan-B for closing day in

case you encounter last-minute hurdles.

 

  1. Learn (and accept) the “negotiables”

 

To manage stamina during the negotiation, find

out early what is and isn’t within each party’s

control.

Your agent can help you stay clear on this and

avoid the emotional exhaustion that results from

trying to haggle in areas that aren’t really negotiable

(e.g., the bank’s bottom line, cosmetic

repairs on most foreclosures, etc.).

 

  1. Manage your own mindset

 

Remember, when negotiating, the least emotional

parties usually have the most power.

The more attached you are to a particular

home, price point, or set of terms, the more

likely you are to panic or cave in on important

points, like price, unnecessarily.

Lean on (and listen to) your agent for objective

support throughout the transaction. It’s their

job to help ensure you’re making the best

business and life decision.

Jovan Hackley

Jovan Hackley is Content Manager and Agent Educator with Trulia.com. Hackley manages and writes for the TruliaPro blog and travels the country educating agents on how to use Trulia’s free and paid resources to grow their business and building better connections with clients. Before joining Trulia, Jovan developed marketing, social media, and communications strategy and campaigns for statewide associations, small businesses, and a variety of locally focused volunteer organizations. To reach Jovan or any member of the Trulia Training team email us at Training@Trulia.com

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