If you go with a real estate agent, they will usually handle the negotiation process for you. You will want to have a basic strategy in mind for how you will handle this process. If you don't have a plan in place, you might end up paying more for you home than you should. Here are some recommendations for getting the best deal you can on your real estate purchase:
Don't fall in love. There's never just one property available at any given time. Unless you have a load of cash and just don't want to think about life without the home you've stumbled upon, then pay what you need to to get it to happen. Always remember thought that there are other great properties to be had and you can find them if you need to. If you can find one of these backup properties before you start negotiations, it might help you keep your emotions in check.
Do your homework. Get some research done on the property you are negotiating on as well as the owner of that property. If you can get an understanding of the seller's motivation to sell, as well as all of statistics on the property itself, you can propose a good deal that will be agreeable to all parties. If the seller got a job in another city and is moving soon, this makes them a motivated seller. If they inherited the property and live out of state they may also just want to get it off their hands. If the property has been on the market for a long time and has some major flaws, you can use this information to your advantage.
Get comparable information. Find out how much similar homes have sold for in and around the same area. This will help you set your price point, and you'll have the data available for the seller in order to justify your price. There are many websites online now that will give you a map view of an area with current selling prices of homes and properties.
Negotiate all aspects. The price you pay for the home is just one of several factors that come up during negotiation time. It can be the case that a seller wants to sell for a specific price. Maybe they don't want to sell it for less than what they paid for it. In this case you can ask the seller to make repairs or additions to the house that will bring the value of the property up to their asking price. You can also ask them if they'd be willing to give you better loan rates than the bank if you buy at their price. And don't forget that the real estate agent's fees are negotiable as well.
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