This is an excellent question because it’s one of the most important reasons for having a seasoned real estate expert on your side.
Some real estate deals are very straightforward, but more often than not it’s a negotiation. The seller’s interest is, of course, in getting the highest possible offer on their property. The buyer, on the other hand, wants to get the best “deal” – hopefully, below the asking price. One of the fears people have in making low offers is that they’ll insult or offend the buyer and not be taken seriously. So, what’s the best strategy?
The only “bad” offer is the one that cannot be justified for legitimate reasons. For example, if you’ve done your homework and discovered that the seller’s asking “price per square foot” is higher than other recently sold homes in his neighborhood, then you can justify your offer based on those facts. Additionally, if a house has been on the market for a longer than usual period, the seller may be much more motivated to make a deal. Go ahead, leverage that information to your advantage.
Conversely, if a particular real estate market is very “hot”, and the houses are being sold faster than they can be listed, you will not have the same amount of leverage. In some cases, depending on how badly you want a property, you may find yourself in a bidding war with other buyers. The key here is to not get overly emotional about a particular house. Sometimes, it’s best to back away and let the dust settle, or explore other areas that are a little less over-heated.
In these situations, your agent or broker can be your best ally. They’ve been through both hot and cold market conditions, and are often the best advisers on how to find that sweet spot for making the right offer.