BluefoxToday blog : Low real estate bid that will work

Buyers like buyer's markets and sellers hate them. Isn't that the way it's supposed to be. Now it's the buyer's turn to rule the roost. Remember seller, only a few years ago you were in the driver's seat. So behave like a reasonable real estate expert when the market shifts and you have to give up some of the past value gains.

Let's examine some of the ways a buyer can negotiate a nice deal with a reluctant seller.

The very first step is to have the buyer get pre-approved for a mortgage loan with a lender you can count on. Establishing this up front will put a positive imprint on the whole low-end offer presentation.

The bid should be accompanied by a fact letter that explains why the buyer thinks this is a reasonable value for the house. The letter should have comparable sales in it and also what is right now on the market. If the for-sale inventory is high, prices are likely to drop in the future and it should be explained that the buyer is prudently taking that into account. It's hard to argue against facts.

A lot also depends on how motivated the seller is. If the house has been sitting on the market for months, there will be certain leeway in the price. That's a good sign for the buyer. Say, if the seller has already closed on another property, then he's carrying two mortgages and that will help soften his attitude. The seller being in the middle of a job transfer is another sign that he might consider taking a lower offer. There are other reasons, but you get the point.

As a buyer, be ready to receive a counter offer that might still make the deal worth your time. Sometimes the seller goes into a cocoon for a few months and then emerges with a new attitude, now willing to negotiate.