I was working with a client a few weeks ago and we came across a property that had been on the market for about 2 months and was vacant.  Although the property did need some work, it was priced at an appropriate value for the size of lot and condition of the home, leaving a little room for negotiation.  My buyers wanted to take a run at it, but with an offer $100,000 below the asking price.

My advice was that the Sellers likely wouldn’t counter their offer, because it wouldn’t be taken seriously.  If a home is priced close to value, the room for negotiation is in the single digits not tens of thousands of dollars.

Here is where the buyer went wrong:

1. The offer price was so far from anything the seller would accept, they had no common ground.  The Sellers were not going to meet the buyers in the middle or anything close to it. The buyers offer was just way to off base.
2. The buyers did not persuade the seller they were serious.
3. Bottom line – The buyer did not give the seller any real basis for a negotiation.

When you make an offer on a home you need to do a few things.

1. Present a clean, executable offer.  If Seller is going to accept your deal, you need to present a strong package deal.  This includes the price, closing date and conditions. If you present a good deal and they don’t have to counter your offer, the process can be expedited.  Once one thing changes in an offer, everything that is in the offer is on the table, again!
2. Demonstrate that if the Seller accepts your offer, they will be dealing with a professional.
3. If you offer less than the seller wants to accept, make your offer strong and attractive in every other way.  Make them think twice before taking the risk of losing the deal by countering. Try to get them to sign the Offer as it is presented.
4. Here’s the bottom line.  You need to make the case that you are the Buyer for their home and will follow through to closing making the transaction quick and easy.

When presenting an offer, make the other side feel comfortable dealing with you as the Buyer.  If they feel confident you can close, they may be a little more negotiable.  Solid buyers do not grow on trees.  Flaky buyers (and flaky agents) do not get the same level of respect from Sellers.

Kris