1. Get Pre-Approved for a Mortgage (Strengthen Your Offer)
Before you even step foot in a showing, understand the real estate pre-approval benefits. In a fast-moving market like Denver, sellers won’t even look at an offer without a pre-approval letter.
2. Research the Market and Comparable Sales
Knowledge is power. Look at comparable sales for home buyers (comps) in the specific area you are targeting. Check out our Denver Neighborhoods guide to see how prices vary by district.
3. Get the home inspection
When you came here looking for real estate negotiation tips, you probably didn’t expect to hear one so obvious. We just can’t stress enough how important a home inspection is when it comes to negotiations! Not only can it eliminate headaches down the road, it can impact the price of the home itself.
An inspection will reveal any minor and major defects in the home. High price repairs like a roof replacement, an aging furnace or hot water heater will prove to be key leverage items when negotiating the ultimate price. Likewise, cosmetic imperfections or low priced repairs aren’t worth haggling. Keep in mind, good faith bargaining reaps benefits when the sale comes to a close. The sellers will be much more willing to help you if post-sale issues arise. If you get too nit picky, they may not be as receptive.
4. Do your homework on the seller
With a little bit of detective work, you can find out vital information on the seller that could be useful in negotiations.
Some special circumstances to keep an eye out for include:
- Days the home has been on the market
- Whether the seller is still living in the property
- The property is in foreclosure
- Family needed to relocate for work or space reasons
All of these factors can influence your negotiation strategy, as well as the offer you make.
5. Focus on the big picture
Barring any major findings from the inspection, don’t get caught up in the small or minor flaws that mask a good find.
Whether the avocado kitchen or dated vinyl flooring has you reeling, cosmetics are not important enough to influence negotiations. It’s important to look at the whole property and not get bogged down on inconsequential items that can easily be fixed.
By all means, keep track of your grievances or take note of a detail you’d like to copy. Just don’t let something minor throw negotiations off course.
6. Move Quickly in the Denver Real Estate Market
The average “Days on Market” in Denver can be as low as 5-10 days for well-priced homes. If you find the right place, don’t wait. Use these home buying negotiation hacks to submit a clean, fast offer.
7. Expect to compromise
In both your negotiations and your house hunting, it’s a guarantee you won’t get everything you want.
Decide exactly what your “non-negotiables” are and stick to them. Outside of those top priorities, be willing to give and take in order to make the best financial decision.
8. Know with whom you’re working
Some sellers are trying to sell without a real estate agent so be sure to keep an eye out for sales by owner. Alert your real estate agent if you’re interested in a house for sale by owner and adjust your strategy as needed.
Whether both selling and buying parties have agents or not, be sure to respect the unspoken rules of real estate negotiation. Don’t contact a seller directly. Having a real estate expert on your side to mediate the process helps keep the the negotiations moving and achieving your goal.
9. Write a Professional Letter to the Home Seller
Personalizing your offer can help you win a bidding war on a house. Including a sincere note about why you love the home can resonate with sellers. See our letter to home seller examples for inspiration.
10. Work with Expert Denver Real Estate Agents
A skilled broker is your best asset. Our expert Denver real estate agents understand the nuances of local contracts and seller psychology.
If you follow these real estate negotiation tips, you’ll be on your way to making a great offer. Our brokers here at Usaj Realty are expert negotiators and will help you with every step of the way and negotiate the contract on your behalf, keeping you involved in any decision-making 100% of the way.
Don’t lose sight of your goal, even if the process gets a little bumpy. Keep a level head and stay optimistic about the outcome of the process.
These real estate negotiation tips will help you navigate this intimidating process and put you in a great position to snag your dream home.
We’re excited to help you begin the journey to your next home. Contact us today to see how we can help you.
Frequently Asked Questions About Home Negotiations
How can I negotiate a lower price if a home has been on the market for a long time?
When a home sits on the market for 30+ days, sellers often become more flexible. You can highlight the “days on market” (DOM) and use recent comparable sales to justify a lower offer, as the seller may be motivated to avoid further carrying costs.
What should I avoid saying to a listing agent during a showing?
Avoid sharing your maximum budget or expressing how much you “need” the house. Anything you say to the listing agent can be used by the seller to strengthen their negotiating position. Keep the conversation professional and focused on the property’s features.
Are closing costs negotiable?
Yes. Buyers can request a “seller concession” or “seller credit” where the seller pays a percentage of the buyer’s closing costs. This is a common strategy to reduce the amount of cash a buyer needs to bring to the closing table.
Should I skip the home inspection to make my offer more competitive?
We highly discourage skipping the home inspection. While it may make your offer more attractive in a bidding war, it exposes you to massive financial risk if the home has structural or systemic issues. Instead, consider an “Inspection Information Only” clause or a cap on repair requests.
How do I know if I should walk away from a deal?
You should consider walking away if the home inspection reveals “deal-breakers” the seller refuses to fix, if the appraisal comes in significantly lower than the agreed price and the seller won’t bridge the gap, or if the monthly payments exceed your pre-set budget.
