The Do’s and Don’ts of Negotiating in Real Estate

26 July 2025

Negotiating in real estate can feel like a high-stakes poker game—except the chips are thousands (or even millions) of dollars. Whether you're buying your dream home or selling an investment property, knowing the right way to negotiate can make or break your deal.

A great deal isn't just about price—timing, contingencies, and even emotions play a huge role. If you go in blindly, you could leave money on the table—or worse, lose the deal completely. So, let's break down the crucial do’s and don’ts of real estate negotiation to help you walk away with the best possible outcome.

The Do’s of Real Estate Negotiation

1. Do Your Homework

Before you even start negotiating, you need to know what you're working with.

- Research the property's value, recent sales in the area, and overall market trends.
- Check how long the property has been on the market—if it’s sitting for months, the seller might be more flexible.
- Look into the motivation of the other party (Are they relocating? Facing foreclosure? In a hurry to sell?).

The more information you have, the stronger your bargaining position will be.

2. Do Get Pre-Approved for a Mortgage (If You’re Buying)

Cash buyers have an edge, but if you're financing a home, a pre-approval letter makes your offer more appealing. This shows sellers you're serious, financially capable, and ready to close the deal.

3. Do Use a Skilled Real Estate Agent

Even if you're a great negotiator, a professional real estate agent can make a world of difference. They bring experience, insider knowledge, and a level of detachment that can prevent costly emotional decisions.

Their job is to get you the best deal while navigating offers, counteroffers, and tricky contract terms. So, unless you're a seasoned investor, don't go at it alone.

4. Do Be Patient but Strategic

Negotiations take time. If you rush, you might make costly mistakes. But waiting too long or playing too "hard to get" can cause the seller to move on to other offers.

Find a balance—stay patient, but don't be indecisive.

5. Do Make a Strong Opening Offer

Lowballing may seem smart, but it can backfire. If your offer is unreasonably low, the seller might not take you seriously. Instead, offer a fair but competitive price based on market research.

This signals that you’re serious while still leaving room for negotiation.

6. Do Leverage Contingencies and Terms

Negotiation isn’t just about price. You can get creative with contingencies, timelines, and other perks.

- Need repairs done? Ask for them in the contract.
- Want included furniture or appliances? Negotiate that into the deal.
- Flexible on the closing date? That could be your bargaining chip.

Every little term can sweeten or weaken the deal—use them wisely.

7. Do Know When to Walk Away

The best negotiators understand one simple rule: not every deal is worth taking.

If terms aren’t favorable, the inspection reveals major issues, or the other party won’t budge, be prepared to walk away. Sometimes, walking away brings the other party back with a better offer!

The Don’ts of Real Estate Negotiation

1. Don’t Let Emotions Take Over

Buying or selling a home is emotional, but emotions can cloud judgment.

- Buyers: Don’t get attached before you own it. Falling in love with a property may cause you to overpay.
- Sellers: Don’t take low offers personally. It’s just business. Counter strategically rather than reacting emotionally.

Stay cool, calculated, and focused on the deal itself.

2. Don’t Reveal Your Hand Too Soon

This rule applies whether you're buying or selling. If you reveal too much too soon, you lose leverage.

- Buyers: Saying, "I love this house, I have to have it!" gives the seller upper hand. Instead, express interest while keeping options open.
- Sellers: Revealing urgency (like saying, "I need to sell this fast!") can invite lower offers. Keep negotiations professional and measured.

3. Don’t Ignore Inspection Reports

If you're buying, never waive an inspection just to secure a deal—this could lead to expensive surprises later.

If issues come up, use them as a negotiation tool—you could ask the seller to fix problems or lower the price. Sellers should also be prepared for this approach.

4. Don't Over-Negotiate

Yes, negotiation is key, but pushing too hard can turn off the other party.

If you nitpick every little detail, demand unrealistic concessions, or come across as too aggressive, the deal might fall apart. Be firm, but reasonable.

5. Don’t Forget About Closing Costs and Fees

Negotiation isn't over until all costs are considered.

Buyers often focus on home price, forgetting about closing costs, taxes, and unexpected fees. These should also be part of your negotiation.

Sellers might offer to cover some closing costs if the price is right—so don’t be afraid to bring it up.

6. Don’t Rush Into Signing Without Reviewing Everything

Once everything is agreed upon, read the fine print. Ensure all negotiated terms are reflected in writing before signing the contract.

It's better to spend an extra day reviewing than to regret something later.

Final Thoughts

Negotiating in real estate is part art, part strategy. Whether buying or selling, knowledge, patience, and smart tactics can put you in a winning position.

- Do your research, stay patient, and use all negotiation tools available.
- Don’t let emotions guide decisions or reveal too much too soon.

At the end of the day, the best-negotiated deals are fair, strategic, and leave both parties feeling satisfied. Now, go out there and negotiate like a pro!