Ready for some great ideas?  After successfully negotiating more than 2,000 residential home sales contracts during my career,  I have developed many proven ideas for you to consider when negotiating your contract.  My two strongest abilities are in negotiating contracts and knowing exactly how to get the specific job done for my client; whether it is to find the best home at the best price or to sell their residence for the top market value.  The fair market value for a home is one price but, the price a seller will actually take or a buyer will actually pay is often a totally different price. 

Let's not leave any extra money on the table when negotiating your contract.  

Here are FIVE POWERFUL NEGOTIATING TIPS for you.

Tip 1:  Find out as much about your opponent (the buyer or seller) as you can before entering into contract negotiations.  The more you know about their hot buttons, their needs, their desires,  the easier it is for you to negotiate a contract in your favor. 
Some of the items you should know include:
a. How long the home has been on the market?
b. Have there been any offers written on the property?  Why did the offer(s) not succeed?
c. Have there been any price reductions?  When was the last one?
d. What is the ideal date for them to move?
e. What, if any, are their company contributions toward the move?
f.  What is their reason for moving?
g. Are there any marital or child based issues they are dealing with?

Your agent should always contact the other broker in advance of writing a contract for you to discover as many of these points as possible.  Be sure to ask your agent what types of additional considerations he/she typically learns before writing an offer.  The more you learn, the more successful you will be in your process. 

Remember, negotiating is similar to playing poker.  The more you know about your opponent's hand, the easier it is for you to win.  The more aces you are holding, the better your outcome.  (This is covered in another portion of this web site)

Tip 2:  Have your broker write a cover letter that specifically details the benefits you are bringing to the table and provides convincing reasons why the seller/buyer should accept your offer (or counter offer if you are the seller). 

a. The letter should include such things as you have agreed to like the ideal closing date your seller is looking for. 
b. Mention the extremely high earnest money you are offering.  (Since your earnest money becomes part of your down payment at closing, offer 1.5 to 2 times the amount that has been requested.  It really strengthens your offer without costing you anything.)
c.  Include the fact that you are pre-qualified and pre-approved for the loan.  (Less risk for the seller)
d.  What about the favorable rent back terms after closing if the seller would like to stay in the property a little longer?  This may give you another selling point - an ace to strengthen your hand.

Your agent should give you many additional points to include in your letter that will further strengthen your ability of getting the home for the lowest price possible.  Ask to see the letter.

Tip 3:  Write a letter to the seller that "sells" you to them.
Explain to the seller why you like their home and why it will be so perfect for your family.  This personal touch can net you a more favorable price and it will put your offer in first position if there are similar competing offers on the property.

Tip 4:  Be sure your agent has the required skills to properly negotiate your contract. 

Realize that there are no requirements for brokers to learn any negotiation skills.  Classes are provided to Realtors® to learn these skills.

Find out if your agent has taken any formal classes in negotiation. 
Ask your agent how many contracts he or she has negotiated during the past 10 or 20 years.  Ask your agent to discuss with you how they negotiate contracts. 
Determine what specific steps they follow to assure you of obtaining the best outcome. 

Frequently, I see untrained brokers so personally attached to their client that they become overly involved in the negotiation process.  They can end up making statements and demands for their client without first conferring with them.  This is a costly mistake.  An agent who becomes too emotionally involved ends up offending the other party or other broker with their intensity and desire to "do a good job " for their client.  The other party (or their broker) can then become aggressive, combative or defensive.  When this happens it will cost you many thousands of dollars.  Or worse, an unskilled broker may even prevent you from successfully concluding your transaction at all. 

A successful negotiation is a learned skill.  The process has many specific sound rules, that if followed are quite productive.  

Ask your agent if you can be present when he/she calls the other broker to discuss your contract (or counter offer if you are selling) to present why the other party should accept your offer.  If your broker hesitates, you need a different broker representing you.

Tip 5:  Consider buying the home in its "As Is" condition.  This greatly reduces the risks of further price concessions from the seller.  In many cases, it will allow you to purchase the home well below market value. 

You may want to have an inspector join you on a second visit prior to writing an offer just to check on the major expense areas of the home.  Generally, the newer the home,  the less risk there is for you.  Or, if you are handy around the house and can make repairs on your own, or if you have a list of trust worthy contractors, buying a home this way may be a great option to consider.  (I have developed a wonderful list of exceptional contractors that my clients frequently use.)

My goal is to have you like my services well enough that you will enjoy referring me business in the years to come.

Be sure to review TESTIMONIALS where you will learn more about what results you can obtain.  Here is a sample:

"Bill knows what to do and he does it right!  His negotiating skills are worthy of a diplomat!  We worked with other agents before him, but Bill is truly a master of his trade.  We achieved our goals in a very complex sale because of his expertise."

 Mark & Elizabeth Turner