Buyer's Resources * Working and Negotiating with Sellers

A real estate guide to working and negotiating with sellers

Information gathering

Ask why the homeowner is selling. Although you may not get a complete and honest answer, this is good information. Are there changes going on in this neighborhood? Are there a lot of homes for sale in the neighborhood? How long has the property been listed on the market?

Is the selling price reasonable?

Is the Seller motivated?

Are there any defects in the home?

Identify all costs involved in this purchase including homeowner's dues (if any) Any special assessments?

Biker in Castle Creek, Aspen, Colorado

Any water damage?

Does the Seller have a time frame in which to move?

Is the home furnished? May add to the value but not the price of the home.

Is the property located in the city or an unincorporated part of the county.

Who provides fire and police protection?

Who maintains the roads?

Who provides utilities? ( water, electric, gas, sewer, trash )

Any conservation restrictions?

Negotiations

Unwise to reveal any personal financial information to the seller, other than the financial ability to purchase the property.

Never let the seller know how much you like the property. This keeps you in a stronger negotiating position. There is an exception to this rule. When trying to purchase a home that you can't quite afford, sometimes if you flatter the seller, they may feel more comfortable accepting a lower offer. Trust your broker to help you make this decision.

What is the percentage of listing to sold price in this neighborhood? This information may be helpful in determining where to start the offer.

Emotions get in the way of being a good negotiator.

Come up with a plan and try to stick to it.

Try to be flexible with closing dates and other options that may not be important to you. This shows your willingness to cooperate, which may make the seller more ameniable.

Always work with a broker that you trust. Working together is the best way to succeed.

Include inspection and mortgage contingencies in your written offer.

Have the property inspected by a professional inspector after you go under contract.

Contingencies to include in the offer: Obtaining loan approval. Structural and/or component inspections at buyer's expense. Radon inspection. The property appraising for at least the purchase price. Review of the title documents, including covenants, rules and regulations of the subdivision when they exist.