Negotiating 101, from Century 21 Online

Negotiating a real estate sale can be stressful. If you’ve fallen in love with a property and have already imagined it as your next home, the process can be an emotional rollercoaster. Your real estate agent, who likely warned you not to become too attached before the deal is settled, will be your guide through the back-and-forth. Among other things, your agent will consider these three factors:
• Market Conditions – Whether it is a buyer’s market (high inventory and falling sale prices) or a seller’s market (less inventory, more buyer demand, and higher prices) will greatly influence how much you should offer for the property.

• Budget – Of course your buying power plays a tremendous part. It ultimately determines where negotiations begin and how high your offer can climb.

• Motivation - Your need to move combined with the seller’s motivation to sell is an intangible factor that will impact negotiations. For instance, if you know the sellers are divorcing and need to sell quickly as part of a settlement that could come into play.

In addition to these factors, it is a good idea to discuss the negotiating tactics your sales associate plans to use. Maybe the best approach is to start low and work your way up to an agreeable price. Or if you know market conditions are in your favor, starting with a firm price and a “best offer” approach could be the better move. Discuss the different options with your agent.