Negotiating With Sellers: Preparation and Research

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There are a few themes you might want to prepare for when entering the mortgage and homebuying market, and one of these is negotiation. Many home sales involve negotiations at various points between buyers and sellers, represented by their various realtors or loan officers, and being prepared for this process pays off.

At VIP Mortgage Inc, we’re proud to assist numerous clients with everything from obtaining great mortgage rates to preparing themselves for potential mortgage negotiation. Much of this process actually boils down to being sure you have the proper financing approvals and other themes in place. This two-part blog series will cover all the steps you should take to ensure you’re ready for a negotiation, plus the role people like a loan officer or realtor play in assisting you here.

Research and Needs

First and foremost, you should be having advanced conversations with a realtor, loan officer and potentially other professionals as you enter the mortgage world. Be clear with these individuals about your needs, desires and wants for the home – this will serve as your baseline for the kinds of offers you can make.

In addition, this will allow you to be more impartial down the line. Part of negotiation involves not being too emotional, and this is easier if you have a stated list of goals and needs for the property that you follow no matter what.


In many cases, you can ask your realtor to prepare for you what’s known as a competitive market analysis, or CMA, on a property you’re making an offer on. This involves the realtor comparing other nearby properties that have sold in the recent past, then suggesting an offer price to you – plus offering an explanation for that offer price that can also be shared with the seller when the offer is made. When sellers have great data to see exactly why you made the offer you did, it’s far easier to negotiate back and forth about the specifics of the offer or a potential counter.


Pre-approval is a more significant step than pre-qualification, for those wondering. It involves a formal application and credit check, but then leaves you in a strong position: Pre-approval functions as purchasing power for the homes you’ll look at, and often plays a major role in any offer you make. Sellers tend to look more favorably at offers made from pre-approved buyers, plus will generally be more realistic with you in terms of counter-offers and other parts of the negotiation process.

For more on the negotiation process involved in many mortgages and homebuying situations, or to learn about any of our mortgage services, speak to the staff at VIP Mortgage Inc. today.

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