Negotiations: Where Will They End Up?

When you make an offer on a property, you never know how it's going to turn out.

It's important to find out as much information about the property and the seller's situation and motivation prior to making an offer, so that you can focus on their HOT buttons and hopefully get a better price and terms.

It's not always only about price, even though that's usually the case. Sometimes the timing of a closing is more important to a seller than getting top dollar.

In today's market, where the housing inventory levels are much higher than years past, sellers are often more willing to look at offers and bring them to a successful close. But some sellers still think we're in the early 2000's when it was a seller's market.

Now, don't think that every seller will just unload their property at any price.

There are listings that have been properly priced and showcased in top-showing condition, like a new home model. Those listings will sell for more than most and they are sometimes even getting multiple offers on them.

There are also HUD, VA, Fannie Mae and bank foreclosure properties, where you'll find that you're in competition with 2,3, 4, or more other bidders, because of where the properties are priced low compared to their true value.

It's also still common for some properties in various communities to be sold quickly and for top dollar, because there is a supply shortage of properties in a certain price point and area at a specific point in time.

As we are in the spring market right now, don't forget that there are numerous other home buyers out there looking at the same properties as you and they are deciding which properties like just like you are doing. You're not in a vaccuum.

If you get in a multiple offer situation, understand that you may only get one shot at making your proposal to the seller, so figure out what's the most you would spend for the property and if your bid didn't get accepted, you knew you gave it your best shot.

There are sometimes where you and the seller are far apart in price. Tell them the reasons why you're bidding the way you are. Show them the recent, comparable sale prices of other properties that are in the area.

Tell them a little bit about yourself and which features of the property you like most. Try to connect with the seller on an emotional level. It doesn't always work, but it's worth a shot.

People always ask me "How many times do sellers and buyers go back and forth with their offers?" I tell them that it can once, it can be 2 or 3 times, or more. The best piece of advice is to keep the lines of communication open. Not usually, but sometimes it can take a week. You should try strategies to get the seller to see why it's to their benefit to accept your offer.

In the end, most of the time you and the seller will come to an agreement and you'll have a new home.