Master the Art of Negotiation
Negotiation is where the right strategy can save you thousands. Learn how to structure offers, handle competing buyers, and negotiate repairs after inspection.
Key Negotiation Strategies
Every situation is different, but these fundamentals apply to most negotiations
Making Strong Offers
- Start with a competitive price based on market analysis
- Include a pre-approval letter from your lender
- Offer meaningful earnest money to show commitment
- Keep contingencies reasonable and necessary
Escalation Clauses
- Automatically increase your offer to beat competition
- Set a maximum cap you're comfortable with
- Require proof of competing offers
- Not always appropriate. I'll advise when to use
Contingency Strategies
- Inspection contingency protects against major issues
- Financing contingency ensures loan approval
- Appraisal contingency protects your investment
- Balance protection with competitiveness
Seller Credits & Concessions
- Request closing cost assistance
- Ask for repair credits instead of repairs
- Negotiate home warranty inclusion
- Consider prepaid property taxes or HOA fees
Earnest Money Guide
Earnest money shows sellers you're serious. It's held in escrow and applied to your down payment at closing. Here's what's typical in our market:
Earnest Money by Price Range
| Price Range | Typical | Strong Offer |
|---|---|---|
| $100,000 - $200,000 | $1,000 - $3,000 | $3,000 - $5,000 |
| $200,000 - $350,000 | $3,000 - $5,000 | $5,000 - $10,000 |
| $350,000 - $500,000 | $5,000 - $10,000 | $10,000 - $15,000 |
| $500,000+ | $10,000 - $20,000 | 3-5% of purchase price |
Winning in Multiple Offer Situations
When multiple buyers want the same home, you need a strategy to stand out. Here's how to position your offer competitively:
Competitive Offer Checklist
- Get your best offer in first. You may not get a second chance
- Write a personal letter to the seller (when appropriate)
- Offer flexibility on closing date
- Minimize contingencies where safely possible
- Increase earnest money to show commitment
- Consider waiving minor repair requests upfront
- Have your agent call the listing agent to understand what's important to the seller
Negotiating After Inspection
The home inspection often reveals issues that weren't visible during showings. This opens a second round of negotiation:
Focus on Big Issues
Safety, structural, and major systems take priority
Request Credits vs. Repairs
Often better to get money and hire your own contractors
Know What's Reasonable
Cosmetic issues and normal wear aren't typically negotiable
Keep Perspective
Don't let minor issues derail a good deal
Dawn's Negotiation Philosophy
"My goal is always a win-win outcome. Aggressive tactics might win a battle but can lose the war. I focus on creative solutions that address everyone's core needs while protecting my clients' interests."
"That said, when sellers are unreasonable, I know when to walk away. Your best negotiating power is always the willingness to move on to the next opportunity."
Common Negotiation Scenarios
Every situation is different. Here's how I approach common challenges
Home priced at market value with multiple interested buyers
Come in strong with your best offer, consider an escalation clause, and write a compelling offer presentation highlighting your strengths as a buyer.
Overpriced home that's been on market 60+ days
Data-driven offer below asking with market comparables to support your position. Sellers often become more realistic over time.
Inspection reveals significant issues
Prioritize safety and structural concerns. Request credits rather than repairs to control the work quality. Know when to walk away.
Seller counter-offer higher than you'd like
Evaluate the total package, not just price. Consider asking for concessions on closing costs, repairs, or timeline flexibility.
Negotiation FAQs
Should I always offer below asking price?
Not necessarily. In a competitive market, offering below asking can mean losing the home. I analyze each situation based on market conditions, days on market, and comparable sales.
What if the seller rejects my offer outright?
Rejections happen, but often sellers will counter rather than reject. If they do reject, we can regroup and submit a revised offer if you're still interested.
How much should I ask for after inspection issues?
I recommend getting contractor estimates for significant issues. This gives us concrete numbers to negotiate with and justifies our requests to the seller.
Is it okay to back out of a deal?
If you have valid contingencies (inspection, financing, appraisal), you can withdraw and typically receive your earnest money back. I'll help you understand your rights and obligations.