What is the strategy behind the pre-approval letter amount. Should it be equal to the home listing price/ what I plan to offer? Or is it okay if the pre-approval letter is 15-20k over the home's listing price? Ex: For a $590,000 house, are there any problems with my preapproval being for $610,000.

I saw a potential property today that has already been reduced from $439k to $429k. Hypothetically, let's say $429k is the accurate market value. 3% of that is about $12.8k. Thus, if I make an offer at $419k, and explain that they don't need to pay the buyers agent, would that be more attractive than the person who is offering $429k with a buyers agent? What is the proper way to word it, so that the seller understands that it is more advantageous to them? Should I always specify that in the offer letter? Also, is there a way of knowing how the commission is laid out in the contact between the seller and seller's agent? Is there a chance that the seller would get all 6% if the buyer is unrepresented? If that is the case, being unrepresented doesn't really have advantages does it?

This category is for sharing strategies on making offers and negotiating. When posting: - Use discretion in sharing specifics of your deal - Do not give personal information of sellers or agents - Discuss both successful and unsuccessful negotiation experiences - Ask for advice on specific negotiation scenarios - Remember that ethical negotiations are key to successful transactions Let's sharpen our negotiation skills together!