Good Negotiating Tactics for Real Estate on PEI

In real estate negotiating unfortunately this often becomes more of a game of one-upmanship than the search for a fair market price for a property as it should be. Realtors caught in the middle try to bring parties together in a way where it does not become a "macho" playoff (and women are just as much involved in the sport of real estate negotiation) but a negotiation in the fair transaction and purchase of a new home.

As a buyer you should realize that not only does this transaction represent the largest type of personal deal you will make – but it is also the largest asset that the seller may possess and that he/she will be just as determined not to undervalue it. Everyone wins when everyone wins! Do not start with a "low-ball" offer unless you really don’t care or want the little piece of PEI real estate that you are offering on. You will simply insult the owner and there is a very good chance that he/she will simply walk away from the table and refuse to deal with you or make a counter offer. Have your realtor research sales in the area and create a Comparative Market Analysis. From the CMA you will be able to understand the true market price of this property and make an offer perhaps just a little under, thereby creating a valid and realistic place to start negotiations from.

Here a few other tips that will help you to secure the best price and ensure that your offer is given serious consideration

1. When making an offer those with the largest deposits will often appear the most serious

2. Bring the closing and possession dates forward or push them back depending on the needs of the seller either giving them more time to find a new home or saving them the cost of another mortgage payment if they have a place to go – this actions can make your offer look more attractive

3. Having a pre-approved mortgage will always make your offer appear more solid to the vendor.

4. Set a reasonable but reply time for your offer but make sure that you do not allow too much time as especially with new listings other offers may come in in the intervening time.

5. Keep subjects, eg subject to financing, subject to selling my home etc to a minimum. These can effectively de-rail a real estate deal and too many will make your offer look less reliable to the seller

Finally you should definitely consider using the services of a professional licensed real estate agent. These men and women are trained and regulated and will guide you through a process that is new to you but an everyday experience for them. They will help you with all the above and most likely have tricks of their own to show you.