How to Negotiate A Good Deal In a Seller's Market

For more than a year now, inventory of homes for sale in New York City has been at an all time low. Developers are continuing to launch rental buildings instead of condos, and smart buyers are scooping up properties in all cash. In order to stay ahead of the curve, you should be well prepared to enter this seller’s market. Here are some tips to get the best deal possible. 

  • The Market Demands a Realistic Number 

Don't insult the owner or seller of the property you are interested in by putting in a low offer. Many owners have an emotional connection to their property or they may have multiple offers to consider. If you go in with a low offer, they may not even bother entertaining it or walk away altogether and you will have a tougher time negotiating going forward.

  • Make Your Intent Clearly Known 

When you are interested in the property, show it. Gone are the days of being sly. No owner wants to deal with someone who is not a serious buyer. Show that you care about their home and want to make it yours for years to come. Let it be known how much you love the space and they will know that you are a serious buyer.

  • Stay Ahead of the Curve with a Preapproval Letter 

Be sure to have a preapproval letter from your financial institution. This will confirm that you are a motivated buyer and are ready to close as soon as possible. If you appear hesitant the seller will choose to work with someone else that they know is a serious buyer.

  • Don’t Sweat the Small Stuff 

If you are negotiating certain terms of the deal, be sure to address the most important point and skip the items that are less important to you. Chances are you are more likely to secure one large item than multiple small ones.

  • Cash is King 

Try to put as much down payment as possible. Owners are more apt to work with someone who doesn’t need to obtain financing, so cash is king. An all cash offer is always a clear winner.

  • Know What Else to Negotiate 

If you cannot negotiate on the price, try to negotiate other factors, such as timing of closing, number of adjournments, or seller's attorney fees.

  • Courtesy 

Be kind to the listing agent. Don't try to play games, be straightforward about your intentions. You want to keep the agent on your side since he is your direct link to the seller.

  • Always Have a Buying Strategy 
It’s important to determine what your bottom line is and how much you are willing to negotiate for that property. Know where you stand and be able to walk away from the deal if necessary. 

  • Entrust an Experienced Agent 
The negotiation process can be a tricky matter and this is where an experienced real estate agent can help you leverage your most important advantages into the negotiation process and help you close the deal.