Negotiating The Price of Your First Home: The Power of Leverage

Very few people like to negotiate and even fewer know how to negotiate well.  As a buyer you can greatly help your cause by understanding the concept of leverage in negotiation.  Webster’s Dictionary defines “Leverage” as “influence or power used to achieve a desired result”.

Leverage can be broken down into 2 different types: positive leverage and negative leverage.  Both are useful and important as a buyer.

Positive Leverage

In negotiation you have positive leverage when you have something that the other person wants.

As a buyer, positive leverage comes in the form of cash that will be paid to the seller at closing.  Money, however, is not the only positive leverage that you may offer to the seller of a home.  When people are selling a home they are often doing so for a reason.  For instance, the husband’s job was relocated to another state, they have a baby…

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