Buying a House? Here’s How You Can Negotiate the BEST Possible Deal With Different Types of Home Sellers

Are you thinking of buying a home? Whether you’re a seasoned buyer or a first-timer, navigating and negotiating through the entire process and securing that dream home at the best possible price can be overwhelming and challenging, to say the least.?

As the Executive Vice President of Revolution Mortgage and as someone who’s been in the real estate industry for over 22 years, I’ve seen it all - from people putting in a much higher offer than they should to clinch the deal and wasting their money, to the ones who nailed the negotiation and even won out over a higher-priced offer.?

So, how can you make sure to get what you’re looking for (and more!) at the price you’re willing to pay??

It all comes down to understanding the different types of sellers. If you’re able to get to the core of their unique motivations and needs, it will give you the upper hand when it comes to negotiating a stellar deal.?

And today I’m giving you a glimpse into the world of home sellers and some savvy tips so you can make sure to secure the home you’ve been dreaming of and get the best possible deal!?

Understanding the 6 different types of home sellers?

No matter how excellent your communication and negotiation skills may be, if you want to ensure the very best deal, you first need to understand that although new properties get listed daily, they don’t get listed for the same reasons.

So, the first step toward buying a property is to truly understand the motivation of the home seller. When you’re able to identify the ‘why’ behind their offer, that’s when you can start thinking about your negotiation strategy.

Let’s take a look at the 6 types of home sellers:?

The Upgraders: These sellers are moving up the property ladder. They're eyeing larger spaces, better neighborhoods, or improved amenities. While the price is an important aspect during the negotiation process, upgraders also care about flexibility and quick closing. Since they’re also in search of a new home, they want to make sure that the negotiation and selling process goes as smoothly and quickly as possible so that they can move on to focusing on buying a new home.?

How to negotiate with an upgrader??

If you’re negotiating with an upgrader, you want to highlight the advantages of your offer beyond just the price – you want to be clear, transparent, flexible, and show them that closing a deal with you will be quick and as easy as possible. Even a heartfelt letter expressing your connection to their home could bring you closer to closing the deal because when it comes to upgraders, they’re usually emotionally attached to their homes.

The Downsizers: Empty nesters or those seeking a simpler lifestyle fall into this category.?

How to negotiate with a downsizer??

When you’re negotiating with a downsizer, you want to keep in mind that their goal is to make their life simpler, so you need to demonstrate how your offer alleviates their concerns about maintenance, upkeep, and making a fresh start in a new space.?

You want to make them feel that selling their home to you will make their life easier. That’s why you want to make sure that you’re not only showing them how you’re taking a part of their burdens away that come alongside owning a home (or at least, a bigger and more expensive home that they don’t need any more) but also that you’re the type of buyer who is not into overcomplicating things.

The Relocators: Job changes or life transitions drive these sellers to move. Relocators are all about selling their home to the best buyer who is able to adapt to their timeline. Relocators are looking for a buyer who is not only interested in buying their property but is also flexible during the process.

How to negotiate with a relocator??

Being prepared to act swiftly and understanding their timeline can make your offer more appealing. A flexible closing date might just give you the edge.

The Investment Sellers:? Investors looking to cash out want to maximize their returns.?

While the price of a traditional home seller is based on its market value AND their perception of the home they’re selling, investment sellers are solely focused on maximizing, so the emotional component is not part of the negotiation and selling process.

How to negotiate with investment sellers??

Study the local market and recent sales to present a well-reasoned offer that acknowledges their profit goals.

The Emotional Sellers: These homeowners often have strong sentimental ties to their property. This means that selling their home is not an easy decision for them, and they want to ensure that the person who buys their home is worth it. Emotional sellers are looking for a buyer who is not all about closing a deal but who “feels right” to them as someone who will love and take care of their home as they did.?

How to negotiate with emotional sellers??

When you’re negotiating with emotional sellers, keep in mind that selling their home is much more than a financial transaction, and you’ll need to earn their trust. A good place to start is to craft a personal, heartfelt letter explaining your connection and how you plan to cherish their home, increasing the emotional appeal of your offer.

The Off-Market Sellers:? They don’t want to officially list their home or go through the process yet but if the right offer and package were presented they might entertain & accept offer(s).?

How to negotiate with off-market sellers??

Negotiating with off-market sellers usually means there is less (sometimes even no) competition from other buyers. Since they’re not in a hurry to sell, you want to keep things casual and avoid pressuring or rushing them into making a decision. What you should also focus on is trying to understand their motivation - are they potentially interested because of the offered price, settlement length, deposit size, etc.? Understanding their why will help you ensure the best results during the negotiation process and hopefully - close a deal.?

6 Negotiation Tips You Need to Know When Buying a House

Now that you learned more about the types of sellers, here are 6 tips that will help you negotiate successfully:?

Research: Knowledge is your biggest asset. Research recent sales, neighborhood trends, and property history to gauge a fair market value.

Flexibility: Be open to compromises on terms like closing dates or contingencies. This will make your offer more attractive to the seller.?

Initial Offer: Start with a competitive but not overly aggressive offer. You always want to leave room for negotiation.

Home Inspection: A thorough inspection can uncover potential bargaining points, allowing you to adjust your offer accordingly.

Communication: Work with your real estate agent to understand the seller's motivations and tailor your negotiation strategy accordingly.

Stay Calm: Negotiations can be intense, but maintaining a level head will help you leave the stress at the front door and navigate the whole process with confidence.

If you’re buying a home, understanding whom you're negotiating with and knowing what to pay attention to during the negotiation process can help land your dream house without overpaying it. By doing your research and recognizing what’s important to the seller, you’ll be able to successfully negotiate what’s important to you!

But even if you don’t feel confident about navigating through the whole process by yourself, partnering with a skilled real estate agent can also provide you with insights and expertise to secure the best deal on your dream home. You can also contact me directly if you could use some extra guidance and advice.?

And if you’re considering taking a home loan and are looking for a lender that offers a more personalized, holistic approach to financial well-being, feel free to reach out to our team at Revolution Mortgage. We’re all about going against the traditional approach by providing services and support that extend far beyond a loan!?

Happy home hunting!?

For more tips and insights, check out my website and follow me on Instagram. Let’s continue this journey together, striving for excellence in every aspect of our lives.

Brian Covey

www.briancovey.com | @thebriancovey