What's the best way to negotiate the purchase price of a home?

Negotiating is a fine art, and you have to consider the personalities involved besides the property. Some people want to negotiate as quickly as possible, and others have to mull things over before they give an answer. Know which type of personality you are dealing with.

One wrong move in negotiations can lose the deal, so be very careful. Emotions run high, and tempers can flare over otherwise minor things. That's why it's always best to work with an agent (LIKE ME!)  and not go it alone.  I devoted an entire chapter of my book,  "The Art of Buying or Selling a Home"  to negotiating. And yes, this book is available at Amazon, Barnes and Noble and all major book retailers, but you can also purchase it through my site, (I know, shameless plug) . The single best piece of advice I could give you is to do your best to put yourself in the other person shoes when you are negotiating

How much should you offer on that house?

When you see the house that you want and are ready to make an offer, where do you start? 

A lot of buyers ask my opinion of  what is called the 90% rule- (90% of the asking price) Some buyers will make what the industry considers a lowball offer of less than 75% of asking price. Some buyers want the house so badly, that they'll pay asking price with no questions asked, and no matter what type of market

So what SHOULD you offer on a home? Well, that answer depends on a lot of things, but most people will come up with a offer based solely upon the asking price of the home, a nd some agents don't even offer buyer-client assistance with pricing, and they should.

When you purchase a home, your agent should conduct an in-depth market analysis of that home

to determine a reasonable price range in the current market. Let's suppose that you didn't have that market analysis from your Buyers Agent- and you offered 90% of the asking price of a home. Only problem is that the home was only worth 80% of what is was listed for. Now without you realizing it, because you did not have the information, you just started your offer too high! Okay, so now you know, why the 90% can cost you money, and in some instances, you'll still overpay for the house.

Maybe you want to put a "lowball offer" in on a house because you like to negotiate, and you want to see how much the seller will cut his price for you.  If your agent did not give you a market analysis of the home you want to buy, you  wouldn't know that this home is underpriced, and even an offer at asking price is a good deal. Rather than let someone else figure out what a good deal this house is, and losing the opportunity altogether  because you tried to overnegotiate, be smart about it, and put ina good offer tha the seller will accept before you get into a bidding war.

It's always up to you what offer to put in on a house, and you have every right to expect and demand that your agent will give you assistance in pricing. That's a fiduciary relationship, which is what your Buyer Representation agreement outlines quite clearly.

Let me put it to you this way- If you are selling a home, you would expect a detailed markte analysis. You should have a detailed market analysis of the home that you buy, too. If the idea of a market analysis for a home that you are buying sounds foreign to you, it's time for a new agent.

Homebuyer Tip #1 from The CT Home Blog. What do you do when...

What do you do when you go see a home and the seller is there during your visit?

Plainly put? You can say three things to the seller: Hello, thank you, and goodbye.  NOTHING ELSE! I  learned something very valuable a number of years ago that I would like to share with you. You can COST yourself a lot of money by talking to the seller. I hate to say it, but it's true. The only time you should ever compliment a homeowner on their property during a showing,  is  if you are not interested in buying the property.

Go on and on about how nice the home is to the seller, and put in an offer? NOT A GOOD IDEA! Smart sellers will not negotiate as much, because they know they don't have to. We were all taught that it's very polite to give an honest compliment, and I believe you should in almost every instance, EXCEPT when you are buying your  home. If you want to tell the seller how much you love their home AFTER we've negotiated, that's fine. It doesn't cost you any money at that point.

I always advise my buyer clients to not even ask questions of the seller during the showing. Tell me what you want to know, and I will ask. The fine art of obtaining basic information from a seller in a conversational way is best. So leave the questions to your real estate agent, (That's me!)  and you very well may be  saving yourself thousands of dollars!