Negotiation is key when buying a new house. While some sellers might accept that “perfect” number right away, more often than not they will respond with a counteroffer. This is especially true if you’re dealing with competition and multiple other offers. In these situations, you should look to your real estate agent; they will lead the process. However, it’s useful to understand negotiation strategies so that you can put your best foot forward. Here are some tips to help you navigate negotiations and close the deal.

Move Quickly

If you receive a counteroffer, it’s best to respond within 24 hours and as quickly as possible. Don’t leave the window open for another buyer to step in.

Don’t Be Afraid to Raise Your Offer

When negotiating, you don’t want to overextend your budget. However, you shouldn’t be afraid to raise your number within reason, especially if you started with a lowball offer. Your real estate agent can provide expert advice to settle on a number that is comfortable for you and enticing to the seller.

Increase Your Earnest Money Deposit

Your earnest money deposit (EMD) is the sum you put down to show the seller that you’re serious. While a standard earnest money deposit is 1-3% of the sale price, offering a 4% or 5% EMD could convince the seller to take your offer.

Change the Possession Date

Showing flexibility in terms of the possession date could sweeten the deal for the seller. Try offering a later possession date so that the seller can stay in the house for a short period after closing.

Let Go of Some Contingencies

Letting go of a few contingencies in your counteroffer could help to reassure the seller that the deal will go through. That said, don’t go overboard. Some contingencies—like the right to a home inspection and subsequent repairs—are too important to give up.

Request Fewer Concessions

Your initial offer may have included the request for concessions—a settlement paid to you to offset closing costs. When making a counteroffer, consider lowering that number or taking concessions entirely off the table to put more money in seller’s pocket and close the deal.

Know When to Walk

Leaving the negotiation table is incredibly difficult; it can feel like you’ve lost. However, you should trust your instincts and your real estate agent. If changing the offer isn’t good for you, and the seller is adamant, you should walk away and find another house.

CATEGORIES

RECENT POSTS