As a Realtor® who has negotiated countless deals in Boston’s fast-paced market, I’m sharing my top strategies for negotiating like a pro—whether you’re on the buying or selling side.
Negotiation Strategies for Buyers
1. Get Pre-Approved and Know Your Numbers
Before you even start negotiating, know what you can afford and have your pre-approval letter ready. This signals to sellers that you’re a serious, financially prepared buyer.
💡 Pro Tip: If possible, get fully underwritten pre-approval, which is stronger than basic pre-qualification and gives you an edge in multiple-offer situations.
2. Don’t Lowball Without a Strategy
While everyone wants a deal, starting too low can backfire, especially in a competitive market like Boston. Instead of just throwing out a number, work with your agent to analyze recent comparable sales (comps) and submit a competitive but reasonable offer.
3. Use Contingencies Wisely
Contingencies protect buyers, but they can also make your offer less appealing to sellers. If you’re competing with other buyers, consider:
- Shortening the inspection period
- Offering an appraisal gap clause (to cover potential shortfalls)
- Being flexible on the closing date
💡 Pro Tip: Sellers often value certainty just as much as price, so removing unnecessary contingencies can help your offer stand out.
4. Be Strategic With Earnest Money
Earnest money is a deposit showing your commitment. A larger deposit (typically 3-5%) reassures the seller that you’re serious and less likely to walk away.
5. Be Ready to Walk Away
The best way to negotiate confidently? Be willing to walk if the deal doesn’t align with your goals. If negotiations stall, keeping a level head and being patient can sometimes lead to the seller circling back.
Negotiation Strategies for Sellers
1. Price It Right from the Start
Setting the right price is one of the most effective negotiation strategies. If you overprice, you may end up chasing the market downward. If you price competitively based on comps, you can attract multiple offers—putting you in the driver’s seat for negotiations.
💡 Pro Tip: Pricing slightly below market value in a competitive area can spark bidding wars, often leading to a higher final sale price.
2. Know Your Leverage & Read the Market
Sellers who understand their market conditions can negotiate more effectively. If it’s a seller’s market, you have leverage and can push for better terms. If it’s a buyer’s market, be prepared to negotiate more flexibly on price, repairs, or closing costs.
3. Evaluate More Than Just Price
The highest offer isn’t always the best! When reviewing offers, consider:
- Financing Type: Cash offers eliminate loan approval risks.
- Contingencies: Fewer contingencies mean a smoother closing.
- Closing Timeline: A buyer who can meet your preferred timeline is valuable.
4. Use Counteroffers to Your Advantage
If an offer is close but not quite right, don’t be afraid to counteroffer. You can negotiate on:
- Closing date flexibility
- Waiving or shortening contingencies
- Higher earnest money deposits
💡 Pro Tip: If you have multiple strong offers, consider sending out best and final counteroffers to encourage buyers to improve their terms.
5. Keep a Backup Offer in Place
Even if you accept an offer, keep a strong backup offer in place just in case the first deal falls through. This minimizes downtime and keeps you in control.
The Bottom Line: Negotiation is Key to a Successful Deal
Whether you’re buying or selling, smart negotiation can mean the difference between a smooth, stress-free closing and a drawn-out, difficult process. Having a skilled negotiator in your corner can help you win better terms, secure the best deal, and avoid costly mistakes.
Let’s Work Together to Get You the Best Deal!
Want expert guidance on navigating the Boston real estate market? Whether you’re buying or selling, I’ll help you craft a winning negotiation strategy to get the best possible outcome.
📩 Let’s set up a consultation today! DM me or click here to get started.