Bargain Smartly to Get the Best Deal

Bargaining is an art, particularly when the buyer wants to make a rock-bottom bid without insulting the seller.

“The offer has to be palatable and show you’ve done your homework,” says Deb Greene, president of the Minneapolis Area Association of REALTORS® and an associate with Coldwell Banker Burnet in Plymouth.

Sheri Fine, an associate with Edina Realty in Minneapolis, agrees. “Sometimes an unreasonably lowball offer can make a seller so angry they won’t make a counter offer or deal with a buyer.”

Here are their suggestions for coming up with a number that is competitive and compelling.
Point out to your buyer that an offer that is more than 10 percent off the list price isn’t customary and is likely to be rejected.
Make sure the buyer realizes that there are other attractive homes on the market and won’t be shattered if the sellers reject their lowball offer.
Help the buyer recognize the home’s strengths as well as its weakness.
Make a list of reasons to share with the seller for offering less than list price.
Instead of asking for the price to be lowered, negotiate other tangibles such as repairs, closing dates, and closing costs.
Encourage the buyer to be respectful whenever he or she is around the seller.

Source: Star-Tribune, Lynn Underwood (11/17/07)