“Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.” -- Franklin D. Roosevelt, U.S. president.

Here on our Real Estate Caribbean blog, we have already discussed important topics like how to find the right realtor and home financing option. You’ve heeded our advice and now have your dream home in sight and are about to make an offer. 

The above phrase “Purchased with common sense” is worth reading and re-reading a few times. Sometimes excitement and emotions can outweigh logic, so it is good to consider some or all of the below negotiation strategies to help ensure you are getting the best price and terms.

Base your offer on the home value, not the list price. Use your realtor and their knowledge as ammunition. For example, if you know that the home priced above market value and has been on the market for a while, a lower offer accompanied by a market analysis may get you the home.

Find out why the seller is moving. The more you know about the seller, the more you can tailor your offer. Does the seller already have a new place and want a quick closing? Or is this property a part of a portfolio and therefore the seller is able to take their time? Having this background information can help you figure out where you might stand and what kind of offer to make.

Expect to compromise. Everybody wants to get the best out of the deal. If you enter your negotiations prepared to compromise, you’ll be a step ahead.

Once you have submitted an offer, it could be worthwhile going back to the table to ask to ask for repairs or other concessions. If you don’t ask, you don’t get. Once you’re in escrow, you have some power.