The Price is Right: How to master the art of real estate negotiation

Donald Trump calls it "The Art of the Deal." You might call it My way or the highway." 

Whatever you call it, FOX 5 real estate expert John Adams can tell you this: securing your dream home at the best possible price isn't just about luck – it's an art. It's the art of negotiation, and Adams is sharing some crucial strategies to negotiate your own successful deal.

Negotiation Tips for Buyers. 

Knowledge is your strongest tool. Before you even make an offer, do your homework. Understand the local market, recent comparable sales, and the seller's motivation if you can glean it. 

Don't be afraid to start slightly below the asking price, but be reasonable; a lowball offer can be insulting and shut down communication. Be prepared to justify your offer with your research. 

Listen more than you speak during discussions. The seller's responses and concerns can provide valuable insights. Be polite and professional throughout the process. This fosters a more collaborative environment, even during tough points. 

Be prepared to compromise. Very rarely does a buyer get absolutely everything they want. Identify your must-haves and your nice-to-haves, and be willing to concede on the latter.

A For Sale sign hangs in front of a house in Patchogue, New York, on June 1, 2024. (Photo by Steve Pfost/Newsday RM via Getty Images)

Common Seller Tactics and How to Counter Them. 

You might encounter the "multiple offers" scenario, which can create pressure. Your counter? Don't get emotionally attached and overpay. Stick to your budget and the true value of the home. 
Sellers might also try to downplay necessary repairs. This is where a thorough inspection is crucial. Use the inspection report as leverage for price adjustments or repairs. 

Another power-play for sellers is to hand you a recent appraisal from a licensed appraiser and then tell you it would be unfair to ask for more than the appraisal and that the seller won’t take less than it’s really worth.

Remember that an appraisal is simply one person’s opinion of a possible value at a particular moment in time.  Unless the appraisal is dated yesterday, it’s likely that the market has changed. The appraisal is just a piece of paper.

Another tactic is the "take it or leave it" approach. While sometimes genuine, it can be a bluff. Be confident in your research and your walk-away point. Don't be afraid to politely decline if the terms aren't right for you. 

Remember, there is no such thing as the last house, which brings us to the final and perhaps most important point. 

When to Walk Away from a Deal. 

Knowing when to step away is a sign of strength, not weakness. If the seller is completely unwilling to negotiate on critical issues like significant structural problems or an unreasonable price despite market data, it's time to consider your options. 

If you feel pressured or uncomfortable with the terms, trust your gut. Don't let emotion override sound financial judgment. 

Walking away from a bad deal can save you significant heartache and money in the long run.

In conclusion, the art of negotiation in real estate is a blend of preparation, communication, and strategic thinking. By understanding the market, being prepared to compromise, recognizing common seller tactics, and knowing your limits, you can confidently navigate the negotiation process and significantly increase your chances of landing your dream home at the best possible deal. It’s not about winning or losing; it’s about finding a mutually agreeable solution that works for everyone.