Most people want to get the best deal possible when buying a home. Of course, who wouldn’t agree? The next question is what’s the best strategy for negotiating the best deal?
The most common mistake I see buyers make is starting too low. Starting too low immediately puts the seller in defensive mode and makes it easier for them to say no. In some cases, the seller doesn’t even respond to the offer. When a seller ignores your offer, your only option as a buyer is to make another offer. Making another offer, (also known as negotiating with yourself) makes you look weak, wastes time, and hurts your future negotiations.
When deciding what to offer, be realistic and practical as no one is going to give their property away. Keep in mind, sellers aren’t going to care how much you are approved for financing, what comparable property you used to value the home, and most of all what Zillow or the county auditor value is. Sellers care about price and terms. Most are willing to negotiate, but have no interest in dealing with someone living in fantasy land.
There’s nothing wrong with being a tough negotiator, just make sure your assumptions are based on reality, as opposed what your friend at work told you to do. In then end, you will save yourself time, money, and frustration.