There can sometimes be an art form to closing the deal on a sale of real estate properties. Whether you're on the buying or selling end of a transaction involving a property for sale you will probably find yourself negotiating at some point during the deal. It's widely known that the listing price for most real estate properties on the market isn't always the final asking price. A lot of the times an initial listing price is meant to gauge the interest of potential buyers and reel them.
Once a home owner has found someone willing to buy their property they know that's only the beginning. A prospective buyer represented by a knowledgeable real estate agent will make an offer that's less than the asking price but not so low that it's considered an insulting offer. This is where the negotiating stage of buying real estate can get tricky. As an interested buyer looking at condos for example, you don't want to make an offer so low that not only is it rejected but also forces the seller to cut off all negotiations with you. Take a look at the listing price and come in with a first offer that is somewhere in the ballpark of the listing price.
Consumer Reports best Tips for Home Buying and Selling
On the other side of the spectrum, offers on homes for sale aren't always for less than the listing price or what the home is worth. There are scenarios that happen in which more than one party is interested in purchasing a particular real estate property and that can lead to a bidding war. In case that happens interested buyers have to determine how badly they want to own that particular home for sale. Bidding wars lead to not only negotiating with the seller but also against the other interested buyer. You're going to have to up your offer enough that it entices the seller and blows the other offer out of the water and that means you have to make sure that your negotiating skills are at the top of their game.
Sellers also have to be adept at negotiating because not all offers are worthy and some need to be counter-offered. A seller making a counter-offer has to be aware of their home's value and the market out there. They can't risk making a counter-offer that turns off the interested buyer forcing them to abandon all negotiations. Selling real estate is a tricky game and you never know when the next offer is made so if you can live with a certain offer it might be best to take it.
Whether buying or selling real estate, buyers and sellers are aided by the guidance of their real estate agents who advise them on what a good offer is before it's made.