Will a Seller Take Less?
How do you get the seller to take less than he or she is asking?
Negotiate From a Position of Power: The art of negotiating in real estate is often diminished to a back-and-forth game of matching each other's counter offers, until you meet in the middle. Here is a better strategy: Identify the actual value of the perfect property, and then illustrate ways that the subject property is not actually perfect. Those imperfections, and their related costs, are the justification for a below-market-value offer.
Make It Okay for the Seller to Discount their Property: Sellers are proud of their properties. Low-ball offers may make them reluctant to sell; even at market value, much less below. Allowing the seller to feel good about you as the buyer gives him permission to go lower. Read more.
Declutter Your Offer: Often sellers have an expectation of their costs when selling a property. Instead of coming in and offering a low price, and asking for a home warranty, closing costs, surveys paid by seller, etc., consider paying for the survey, buying your own warranty, and covering all closing costs. If you could spend $1,500 extra for your closing cost to get the property for $5,000 off the listing price, would that be a fair trade? Factor what you will spend on those items and work that into your offer price. Because the seller does not feel like you are beating them up, your chances of succeeding improve.
Do What You Say You Will Do: When you say "this is my final offer" be ready for the offer to be your final offer. If you come back again afterwards The leverage shift just want to the seller. On the other hand, when you walk away today and then come back with the same offer 24 hours later you are much more likely to get the deal done.
Offer the Closing Argument: Similar to the presentation of your offer, your closing argument is presented with your final and best counter offer. It recaps the logic behind your below-market-value offer and, often, re-states the straightforward nature of you offer; e.g. you pay closing costs (which are less than the discount you would receive, so the net result is favorable to you). The setup came with the original offer. Now, it is time to introduce yourself again, and separate yourself from the sharks. It also offers you an opportunity to say thanks to the seller for negotiating and inform them that you will be moving on without a yes to the counter.