9 negotiating mistakes to avoid when you're buying in NYC
- Don't make a lowball offer without an analysis of comparable apartment sales
- Avoid focusing on a specific number; consider a broader price range instead
Make sure you don't share too much information with the seller's broker when viewing a place.
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Buying in New York City can involve a steep learning curve. Even if you are comfortable with brokering deals in your day job, negotiating the purchase of an apartment or house can be unfamiliar.
So it's a good idea to familiarize yourself with the best negotiating methods. One of the obvious mistakes is to come in with an initial offer that's well below the asking price without having comparable sales data to back it up.
Successful negotiations often come down to mutually respectful relationships, making it essential to have a broker with a good attitude and reputation. Your broker should be someone you trust and the seller's broker can work with. You also don't want to get hung up on a specific sales price. Instead, settle on a price range you can work with, and show flexibility in areas that might benefit the seller. For example, you could offer to pay the transfer tax, which is typically the seller's responsibility.
Whatever you do, always have a plan for your next move. And make sure you don't share too much information—particularly your motivations—with the seller's broker when viewing the place. To learn about other mistakes to avoid, read on.
[Editor's note: A previous version of this article was published in February 2024. We are presenting it again with updated information for April 2025.]
1. Don't make a lowball offer without good comps
"Lowballing in a down market is acceptable, but you have to ensure you are still in a down market," said Kobi Lahav, director of sales at Living NY. A poorly timed lowball offer can mean the seller won't take you seriously.
When coming in with a bid well below asking, you should have evidence that the apartment is listed for more than it's worth. That includes providing statistics, trends, or comparative sales—aka "comps"—to justify your lowball bid.
"Sometimes lowballs are fair if the property is overpriced, but if there's a lot of activity at an open house, it's just not going to fly," said Ian Katz, a broker at Compass. Have a conversation with your broker so you will be able to make an informed offer accompanied by a well-reasoned analysis that makes sense to the seller.
This is where you need the help of an expert who understands the market and can help you know what the correct price is.
2. Don't work with just any broker
Not all brokers are the same. Consider their training, education, and experience level as well as attitude and reputation. A broker with a negative reputation will not gain the confidence of the seller's representative.
Lahav said he's managed to win some bids because the listing broker preferred to work with him as opposed to other brokers. And when he is on the sell side, he's chosen offers because he knows the other broker's professionalism would be less likely to create issues with the board package or other parts of the vetting process.
Interview several brokers—once you choose who to work with, you'll need to trust what they're saying and how they're advising you in the negotiation process.
3. Don't negotiate single, isolated terms
One of the biggest mistakes is not budging on a specific price. Instead of focusing on price alone, it's much more effective to negotiate a package that takes into consideration other aspects of the deal, such as the deposit, contingency, or closing details, like how soon the deal can be done and who will pay taxes and fees.
For example, if you don't want to go much higher on price, perhaps you can offer a non-refundable deposit at a higher percentage. Or find out what the seller wants and see if you can offer it. The more you learn how to create packages, the more you can sufficiently control the negotiation because there are so many outcomes that could work for you.
Package negotiation has been the norm in new development deals for years. A sponsor's financing conditions give them less leverage to lower prices, meaning most deals involve negotiation around transfer taxes and carrying costs. When you focus exclusively on price, you're more likely to miss out.
This can be a leap of faith for some buyers. "I often tell clients they need to look at it from a more collective bargaining perspective. One often needs to be willing to compromise to get the deal over the goal-line," Katz said.
Buying a co-op is particularly complicated—more so than buying a condo. Co-ops usually have post-closing liquidity requirements or other financial requirements. If you have stellar finances, plenty of liquidity, or could even pay cash, that could put you in a much stronger negotiating position.
4. Don't disappear if you don't receive a counter-offer
Stay in contact with the seller's broker. When a buyer doesn't follow up after making an offer, the seller's agent will not consider the buyer as serious, Lahav said.
That's especially true when there's a lot of interest in a well-priced property.
What if the seller doesn't counter? A buyer should go back to the seller's broker to get a sense of whether other offers have been countered. If so, the buyer needs to come in with a stronger offer, generally within 10 percent of the asking price. If the property has been on the market for a while, buyers can afford to have more patience but should still check in with the seller's broker on a regular basis.
5. Don't talk too much in front of the seller's agent
When you're viewing a place, the seller's agent is usually showing you around. Should you say how much you love the view or how pleased you are there's a washer/dryer? These kinds of comments are unlikely to negatively affect your negotiations.
It's fine to ask questions, but don't show your cards. For example, it would be unwise to share your motivations for buying or anything that might be used against you. You don't want to be identified as a buyer who has few other options—the apartment is your only choice, or you have a tight deadline—these are details that can be used as leverage.
Don't share too much of your motivations or specific leverage items until it's time to exchange those for something of value.
By discussing your financial details within earshot of the seller's agent, you might give them reason to believe you can afford more than you initially offer—or, without knowing it you could disqualify yourself as a buyer by inadvertently underselling your qualifications.
6. Don't be rude
You don't want to introduce any additional tension into what can be a fraught process. After all, negotiations are built on relationships. Wei Min Tan, a broker at R New York, said it's a misconception that a hardball attitude gets results.
"People would rather do deals with people they like," he said.
You also want your broker to build rapport with the seller's broker. "That rapport is going to translate into the seller's broker's communication with the seller—there's nothing to lose from being nice," Tan said.
So make sure your broker takes the time to call the listing agent and find out what their needs are and what the seller wants. This is where tact comes in—a good versus average negotiator comes down to a question of whether they have the personality to make that conversation happen.
In addition, telling a seller at a showing that you are looking at other properties can backfire. "While the buyer thinks it will make the seller offer a discount, in general it just makes them look like window shoppers," Lahav said. However, when a contract is out and the seller is dragging their feet, saying you are looking elsewhere can be a tactic to move the process forward.
Lahav compares it to dating. "Declaring you have other options on a first date will most likely make you seem condescending and will create resentment. Making sure your serious partner understands that if you don't tie the knot soon you are out is a more acceptable tactic," he said.
7. Don't forget your Plan B
You have very little leverage if you don't have a backup plan.
Your Plan B shouldn't be to give up and hunt for another apartment but to have a new strategy for your negotiation. How can you make your current offer more attractive to the seller? This is why it's important to negotiate a package rather than just a price.
Also, avoid being in a rush. Spend time planning what your next move will be. Ideally, your broker will have spoken to the seller's broker and worked out what it will take to close the sale. Maybe the seller wants to rent back the apartment for a month or two or would be willing to close if you paid a higher non-refundable deposit.
8. Don't forget to write a good offer letter
An offer to buy a place is more than just a number scribbled on a piece of paper. Some brokers write the letter formally on paper with a letterhead and email it as a pdf. Your offer letter should be carefully crafted and explain the offer as well as the reasoning behind it, referencing supporting information like comparable sales.
Because the seller's broker will show an offer letter to the seller, it's in your best interests to present yourself as a serious bidder who is taking the time to produce a personalized offer letter, rather than someone who is sending out multiple formulaic offers at the same time.
With your offer letter you should include pre-approval from the bank if you're financing. Also include the standard financial disclosure statement and if you're buying all cash, you should include a document showing proof of funds or bank statements to verify you have the money to pay.
Tan recommends creating a single pdf with all the paperwork. "What's really bad is when a broker sends everything piecemeal—they send an offer in an email and then a follow up three days later with the pre-approval." He said this piecemeal approach shows disorganization.
9. Don't forget the the big picture
Some buyers get so focused on negotiating the price down by $5,000-$10,000 they lose sight of the fact that all negotiations take time and can cost them money, Lahav said.
Slowing the process down can present problems getting a mortgage if a rate lock is going to expire. If that happens, you could either be subject to additional fees, paperwork, or even a higher rate.
"You have to do the math and see if going back and forth is going to be worth it," Lahav said.
—Earlier versions of this article contained reporting and writing by Emily Myers.
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