Successful negotiation when buying takes honesty, openness and hard work

Great! You found the perfect house - the one you have been waiting for. How do you strengthen your negotiating position?  Here are some important pointers to ensure a successful offer.

Do your homework
Knowledge is everything, as we all know, and having the complete picture of the property, the seller and your own position before you make an offer avoids embarrassment. You should expect your realtor to help you understand the following: the market in general; how nearby active properties and recent sales were priced; how long the property has been on the market and whether there have been price changes; whether sellers recently bought the property and, if so, at what price; any mitigating deadlines for you ro the seller; and whether any offers are expected or already on the table.  In addition, you need to evaluate the effect that your requested contingencies will have on the seller: the appraisal value; property inspection and survey details. Will the seller see these as potential deal breakers or a natural part of the sales process.

Ask your agent to find out the answers to the subtle and sometimes difficult questions: Is the seller in a hurry? Must the offer be rushed and why? How firm is the price? After all, every seller wants to close quickly for full price. But some, upon closer inspection, may need to close

Trust is worthy

Establishing trust between the parties is imperative in any negotiation. The conflict inherent in the process - "we want to give less to you, you want to get more from us" - needs to be diminished. If you can establish a rapport quickly it will underscore the perception that you will be reasonable in business. This can manifest itself in recognizing and sharing even the most seemingly insignificant similarities - say, a common interest or mutual background detail. Better still, ask your agent to informally establish your qualifications and reliability (that you are a respected professional or work at a well-known firm), which can increase the seller's trust.

Having begun the negotiation by establishing a rapport, reinforce it throughout the process. 

United you stand

Rely on your agent. You and your agent together will establish a team approach that sellers will rightly identify as a position of strength. If the sellers throw curveballs, discuss new strategies with your agent away from the table. Two heads are always better than one!

Appreciate the subtleties

During negotiation little things can make a huge difference. At times a disparity in age, style or personality between the parties requires extra time to make a connection. Above all a respect for the property should prevail. Mentioning faults and deficiencies as justification of a lower asking price is not necessarily a good strategy. Instead, sometimes accolades for the seller's house, decorations and gardens will resonate more positively (and will ultimately be more effective) than tieing your offer price on the shortcomings of the home.

On the other hand, you need to position yourself as a qualified buyer who's appreciative of the property and who can be trusted to complete the transaction. However, personal considerations, such as the need to conclude a contract rapidly, may undercut your negotating position so be careful what you reveal of your own situation.

Be focused and thorough

Make sure that your paperwork is organized and be cognizant of deadlines.  You don't want to miss a response because your agent couldn't get in touch with you. In addition, remember - trust but verify. There's always the possibility that the seller's agent may have unknowingly provided inaccurate information or perhaps overlooked certain details.  Rely on your agent to double check the paperwork for initials and all the contingencies to protect your interests. After all, that is what your agent is there for - working on your behalf.

And - Good Luck with that offer!