5 Negotiation Tactics to Help You Get the Best Deal On Your Next Property

It's a buyers' market these days: Redfin's recent real estate analysis shows there are more homes and properties available than in the past six years, with the organization noting that an "increase in supply and drop in homebuying demand has tilted the national market in favor of buyers."

Yet those same real estate analysts are quick to point out that buyers aren't feeling it. Home prices are still rising. Furthermore, if conditions switch to a sellers' market, prices will only rise. 

If you're looking at buying property right now, it's not just about haggling over price — it’s about finding that sweet spot where both you and the seller walk away happy. The trick is knowing when to push, when to compromise, and how to use market insights to your advantage.

A little preparation goes a long way, and with the right approach, you can turn a decent deal into a great one. The best negotiators walk in with a game plan, including six key pillars of negotiation that can help you get the best deal on your next real estate investment.

1. Know Your Goals

Before jumping into negotiations, get crystal clear on what you want:

• What’s your maximum budget? 
• Are you willing to take on repairs?
• Does the property need to be move-in ready?
• Do you need certain amenities nearby, such as schools or grocery stores?
• What's your preferred closing timeline?

It's easy to become caught up in negotiations and get carried away, resulting in you "making concessions that don't align with your goals," warn KellerWilliams Realty experts. Knowing your non-negotiables will keep you from making impulsive decisions or getting talked into a deal that doesn’t align with your needs. So, set realistic expectations, prioritize what matters most, and have a firm understanding of when to walk away from a potential real estate deal.

2. Perform Due Diligence

Knowledge is power, and the more you know about the property and the local market, the stronger your position will be. Beyond the home or property itself, aspects like location are a huge cost driver. "People are increasingly demanding high-quality living environments," found one recent real estate study, noting that proximity to parks and green spaces often influences demand (and therefore prices).

Circling back to the aforementioned tip of knowing your goals, location may influence the price you're willing to pay. Regardless, it comes down to combining your goals with area research as you examine the following:

• Researching comparable sales and prices in the area with platforms like PropertyReach (studies show the going rate for similar properties in the area is a big predictor of negotiable rates)
• Investigating property details, including location and property history
• Looking into things like zoning laws, upcoming developments, and neighborhood trends

Uncovering these details will help you justify your offer against your own goals and the demand from other potential buyers. More importantly, it can help you to spot potential red flags before they become costly surprises further into the negotiation process. 

Speaking of which, another example involves how long the property has been listed. While this information is critical, it's a detail many sellers don't think about

 "Making an offer on a house that has been on the market a long time could be a gamble that pays off if you're looking to score a deal," reports the National Realtor Association. "If the house has been on the market for a long time, the homeowner is probably motivated to sell as soon as possible, and that can mean flexibility on price. In the worst case, if you come in with an offer that's too low, the seller might come back with a counteroffer that's still reasonable."

3. Build a Relationship

While you may be focused on the strict numbers, there are humans on both sides of the negotiation table — and that personal connection or relationship can influence negotiations heavily, reports Forbes Business Council.

Don't view your real estate negotiation as an inherent battle — it’s a conversation. As with any sales negotiation, sellers are more likely to work with buyers they like and trust. Taking the time to build a friendly rapport can go a long way in getting the seller to meet you halfway. Approach the process as a partnership rather than a tug-of-war, and you might be surprised at how much smoother things go.

4. Show You’re Serious

Sellers want a buyer who won’t waste their time. A strong offer backed by solid financing (like a preapproval letter) proves that you mean business. "Offers that include a pre-approval letter send a clear signal to sellers that you are a serious buyer with the financial means to close the deal," notes one home lender.

If competition is high, consider sweetening the deal by being flexible on the closing timeline or reducing contingencies — but only if it works for you. And if the numbers don’t add up? Be ready to walk away. Nothing strengthens your position more than knowing you don’t have to take the deal.

5. Be Patient

Rushing into a deal or getting emotionally attached to the home in question can lead to costly mistakes. When emotions "drive your decision-making," warns Harvard Law School's Program on Negotiation, "you could end up overpaying and regretting your purchase." 

Stay calm, trust the process, and don’t let personal feelings cloud your judgment. "To make more rational decisions, try to fall in love with several properties (or whatever commodity you’re shopping for) rather than just one," Harvard Business School professor Max H. Bazerman told the law school.

Patience is really the key as well. "When you have one or two appealing [options] to turn to, you’ll be less tempted to overbid in the current negotiation," says Bazerman. "If negotiations stall or the seller needs time to think, let them." Sometimes, patience alone can be the difference between a so-so deal and a fantastic one.

More Ways to Successfully Negotiate When Buying a Home

One underrated tactic when negotiating is to understand the seller’s motivations. Are they in a hurry to sell (especially during periods of economic turmoil or inflation)? Do they have multiple offers? The more you know about their situation, the better you can tailor your negotiation strategy. 

You also have a lot of wiggle room for closing costs, which is a part of many real estate transactions that buyers don't consider. You can always ask the seller to sweeten the deal, leading to a better outcome.  "A buyer may ask a seller to pay a flat dollar amount toward their closing costs, or up to a percentage for what's an allowable contribution for a lender," says Cara Ameer, a broker associate and realtor in Florida.

Also, consider working with an experienced real estate agent or Realtor — they’ll have insights and strategies that can give you an edge. "Don't just settle for the first agent to cross your path—remember, a house is a huge purchase, the stakes are high," recommends the National Realtor Association.

When you come across a viable agent or Realtor, be sure to ask the following:

• How long have you been working as a real estate agent or Realtor?

• Do you specialize in buying, selling, or both? (a Realtor or agent who does both can better help you navigate negotiations)

• How well do you know this area and its market trends?

• How many homes have you helped sell in the past year?

• What is your negotiation style?

• How do you handle multiple-offer situations?

• What are some market challenges you've faced and how did you handle them?

Lastly, think about aspects that affect costs but not the actual property or building. Take furniture as an example. "Furnishings are included in some, but not all, property listings," says award-winning realtor David Burch. "It may be possible to negotiate it into the contract of purchase in sale. [...] Of course, there is no guarantee, but this may be a way of offering value that doesn’t involve changing the sales price."

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