Real estate transactions and emotions - for Buyers

There are generally three types of homes for sale on the market:

  1. Fair market sale from a private-party seller
  2. Distressed properties that are bank-owned
  3. Distressed properties that are short-sales (seller’s mortgage is more than the property value)

Negotiating on a bank-owned home or a short-sale entails a different approach that when purchasing a home from a private party.

When considering purchasing a home and making an offer, you should refrain form using your emotions in making decisions but rather make informed decision and things will work out for the best. With the assistance of your realtor such as Aiello & Associates, you can work together in order to formulate a good clean offer that will benefit you and the seller alike.


Keep in mind that overly aggressive up-front offers could reach a dead end or backfire on you in later in the inspection negotiations.

At Aiello & Associates, it’s is our obligation to negotiate the best possible price, terms and conditions on your behalf. This obligation is balanced by a competing factor, which is that we also must help you to actually obtain the property under contract and moving forward towards a successful close of escrow.


Extreme low-ball offers are not the best choice when it comes to private-party home sellers. A very low offer from a buyer with a variety of terms and conditions is almost certainly going to get a worse result than a more carefully thought-out offer that involves less negotiation. And furthermore, an offer that is beneficial to both parties.

Here are just some of the emotional factors that may drive how a home seller negotiates with you:

  • Attachment to the home

    Attachment to the home – Never underestimate a seller’s personal attachment to their home. If they’ve lived in it for years, brought up children there or celebrated other major life events in the home, parting with the home will certainly be difficult. Many sellers have a desire to see the home passed to someone that they feel good about and they may make this judgment based on the offer terms you are presenting.

  • I’m offended

    I’m offended – presenting an unrealistically low-ball unfair offer with unusual terms and conditions could certainly insult the most patient seller and hurt their feelings. It’s only normal that a seller perceives their home value differently than you. And, many times a seller will just think that you’re not a serious buyer and you could lose a chance to purchase a good home.

  • My home is better than the neighbors’

    My home is better than the neighbors’ – Sellers may perceive their yard, lot location, or the finishes of their home as superior to their neighbors. All you can do if offer up your own opinion and analysis of competing properties, but some gaps simply can’t be bridged. A private backyard may be worth $20k to one buyer and nothing to the next buyer.

  • I just spent thousands on upgrades

    I just spent thousands on upgrades, so my house is worth a lot more – If the seller recently upgraded the home and spent thousands of dollars on things such as: New counter-tops, updated bathrooms or kitchen, these will certainly add value to a home but not on a dollar-for-dollar basis.


    Other upgrades such a new roof, stucco or siding may simply be maintenance related items that add no measurable value to the home. These simply make the property more sellable. You should try to step back from debating the value of individual upgrades and focus on the overall price of the home and how it relates to similar sales in the area.

  • I just lowered my price

    I just lowered my price – There is predictable psychology at work between the time a property is first listed on the market and each time the seller makes a price reduction. Negotiability in the first few days or couple of weeks is definitely limited. Low offers have a greater chance of success with properties that have been at a particular price point for a long period of time.

  • Get to the point

    Get to the point – Most sellers do not embrace negotiation as it makes them nervous and uncomfortable, so you should write an offer that will get you to your desired result in 2-3 steps at most. Any more than that, and it’s almost guarantee that a seller will begin to feel that they are being taken advantage of or that they are being nickeled and dimed.

  • Don’t forget about the inspection

    Don’t forget about the inspection – Unless you are buying a brand-new home, you are going to be certainly worried about repair and maintenance items that will show up during your home inspection. As a buyer, you want perfection, and long-time home owners recognize that every older home has issues and ongoing maintenance items associated with it. If you beat a seller down too hard on price during the initial negotiation process, there is not going to be anything left to give if your inspection turns up issues that you would like to have repaired.

As a buyer, it’s only normal that you should always try your best to negotiate a great deal on a home. However, if you can put yourself in the seller’s shoes for a moment and acknowledge some of the emotional factors driving their decisions, you will craft an offer that have a better chance of success.

Generally, the goal as a buyer is not to overpay for a home (unless there may be a bidding war with multiple offers on a home that you really love and would rather not lose it). However, if all of the data tells you that are overpaying, sometimes letting more time pass is the only solution that is going to get the seller in a frame of mind where you both can come to a successful beneficial agreement for both parties.