Tips for Negotiating in a Seller’s Market

Currently, the housing market is definitely favoring sellers over buyers. Low inventory and high demand are driving up prices and getting a great deal on a property isn't as easy as many might think in the wake of a global pandemic. 

Many homebuyers actively dislike the negotiating element of purchasing a new property. After all, in the United States, haggling over price isn’t generally well-received. However, it’s something that is accepted as a standard part of any property purchase. Here are our top tips for negotiating a property deal in a seller’s market.

Know What The Property Is Worth

The asking price is one thing, but how much is your dream home really worth to you? In a seller’s market, it can be easy to let your heart rule your head and get swept up in a bidding war, but it’s important to think about the absolute maximum amount you would be willing to spend without regretting the purchase. 

Time On The Market

The longer a property has been on the market, the more likely you are to be able to negotiate a deal. Consider how long your dream home has been available when making your offer. 

Act Fast

When properties are selling like hotcakes, you don’t have time to wait around. Don’t dawdle when it comes to booking showings – getting in as soon as a property goes on the market can mean that you are one of the first to submit an offer. And if the seller is keen to move as quickly as possible, they’ll be more likely to accept one of the first offers that they get. 

Deposit

Your earnest deposit is the amount of money that you submit with your offer. The larger the earnest deposit, the more attractive your offer is likely to look – particularly if the seller has multiple offers on the table. Offer the largest deposit that you can – after all, you’re only going to pay it at closing anyway. 

Paperwork

If your buyer is considering multiple bids, it can be invaluable to have all of your paperwork in order. A pre-approval letter and proof of funds will help to reassure them that you have the funding in place to buy their home immediately and minimize the risk of any delays. 

Don’t Ask For Extras

A seller’s market is not the time to try and squeeze a few little extras like them leaving fixtures and fittings, replacing the front door or doing any other small jobs before they leave. This is likely to be a massive turn-off for any seller. 

Ask Your Realtor For Advice

If you aren’t sure what to offer or you don’t want to enter the negotiations yourself, you can always ask your realtor to step in for you. Most good Realtors have extensive negotiating skills and will do their best to get you the best deal possible on your property. 

For more tips on negotiating on a property in a seller’s market, please contact Phyllis Cyphers realtor DRE# 01810454 in Indian Wells, CA at (714) 323-1175.

Phyllis Cyphers, Realtor

Desert Sotheby's International Realty

DRE#01810454

C 714.323.1175

phyllis@phylliscyphers.com