Sometimes home sellers will not negotiate. In a seller’s market, they have the upper hand. Home buyers want to negotiate. The most common strategy is to want to go way below the asking price. Buyers believe that starting low is the best way to get the seller to come down on the price.
That might work in a buyers market but in a sellers market the sellers sometimes just say no rather than negotiating.
When there are multiple offers buyers usually get one chance to put in their highest and best offer. If there is any negotiation at all the seller negotiates with the buyer who submitted the best offer. The buyer who goes low never gets an opportunity to go up
It has become a common experience for home buyers to lose out on the first house or two because that is what it takes for them to understand that going too low isn’t the best way to buy a house.
Buyers should do their homework and have an idea of what the value of the house they are making an offer on is. If it is over priced I strongly encourage buyers to make an offer that is below the asking price. Most buyers will not make an offer.
I see overpriced real estate as the biggest opportunity for home buyers to buy without competing in multiple offers.
When making an offer on a home that is being offered at or below the market value the offer should be at or over the asking price.
There is no single strategy that works in every situation for buying a house. There are sellers who do not need to sell and who will hold out for a retain amount even if it takes years.
Having a negotiating plan in your head is fine just keep it in your head as you pay attention to prices and what the sellers strategy. Sellers should keep in mind that buyers really want to negotiate.
Buyers sometimes regret having “won the bidding war” and as a result they back out after the inspection. Sellers who get top dollar for their home should expect the buyer to request some repairs.
Advice from friends and family who bought a home last year or a decade or more ago probably isn’t as useful as the advice from your Realtor®. Choose an agent with experience. There is no substitute for experience.