Homebuyers, it’s time to sharpen your haggling skills.

Nearly two-thirds of buyers paid under list price last year, the highest share in six years. The typical discount was 7.9%, the biggest markdown in 13 years—about $31,600 off the typical home. And with mortgage rates now below 6%, buyers stand to save even more this year.

But how do you convince a seller to accept your indecent proposal? We got lowballers to share their dos and don’ts.

Do look for long days on the market. The clearest sign of seller fatigue is a listing that’s been on the market for a while. That’s how San Francisco–based real estate agent Julie Upton helped all her buyers pay under list price last year, including one who purchased a house in Sebastopol, CA, listed at $1.3 million. “After 90 days on the market, we submitted a $1 million offer,” she recalls. “They outright rejected it, but started negotiating three weeks later.”

Don’t say the house is a dump. Even if it is a dump, that’s worth sugarcoating. On the Sebastopol property, Upton simply said it “needed improvements” totalling $300k–$400k. It can also help to make the offer feel less personal. “Play the pauper,” Upton says. “I write letters on behalf of buyers saying they’d love to offer full price, but won’t qualify for the loan.”

Do know your numbers: After eyeing a $499,000 house in Tacoma, WA, that had sat on the market 68 days, investor Tom Hume offered $460,000. “I explained that it was simply a matter of cap rate: At $460k, the cash-on-cash return would be just north of our 5% threshold,” he explains. “The listing agent did not seem offended.”

Do come armed with comps. New York City–based real estate agent Jane Katz made an “embarrassingly low” offer of $1.8m on an apartment asking for $2.5m. To prove her buyer hadn’t plucked that figure out of thin air, Katz pointed to similar properties nearby with dramatically lower fees. At a nearby building, maintenance was 66% lower, while other Fifth Avenue apartments were 66% lower as well. These comps helped the seller reduce their expectations.

Do solve the seller’s problem. Chad Cummings recently spotted a $1.2 million home in Cape Coral, FL, that had been sitting on the market for 247 days. “My client offered $714,000,” he says. “The listing agent laughed and hung up.” But Cummings knew the seller needed to liquidate due to divorce, so they sent an offer with proof of funds, a 14-day close, and no inspection or financing contingency. “The seller’s attorney called back, and we closed at $740,000.”

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Owning your own private island isn’t a pie-in-the-sky pipe dream. Just ask Shane Coderre, who owns three islands in North Carolina, one of which pulls in $70,000 annually as an Airbnb. Check out how you can follow in his sandy footsteps.

Q: What inspired you to buy a private island? “I had moved from Orange County, CA, one of the richest areas in the country. So when I got to Wilmington, NC, everything looked dirt cheap by comparison. I talked to one guy who owned 22 islands and was looking to sell some. So I paddled out by kayak to see one along the Intracoastal Waterway. Dolphins were swimming by. It was beautiful, but I thought there’s no way I could afford it. He said, ‘I guess I’ll take $50,000.’ We were in the courthouse the next day.”

Q: What did it take to build a house on it? “I was a business law major, so I did my research and found a little-known law where you’re allowed to build a 12-by-12 structure called a ‘fish camp’ without a permit. A local dock builder and his son camped on the island and built the two-story cabin in three months. It has a propane shower, fireplace, electricity, and fantastic cell service. I bought a TV but never installed it since no one wanted it.”

Q: How did you turn it into an Airbnb? “It was a disaster at first. The first renter rowed out in a rowboat but didn’t pay and left the cabin wide open with chicken bones everywhere. Burglars broke in and slept in the bed. I eventually hired a property manager and boat captain. It grosses around $70,000 annually and is booked solid most summers.”

Q: Are islands good investments? “Everyone laughed at me at first, but they’re incredible investments. I bought another island for $84,000 and sold it within a year for $275,000—nearly a 600% return. I also lease one island to hunters year-round for $600 per month. I’ve bought four islands and still own three. One I hope to pass down to my daughters.”

Q: What advice would you give someone buying a private island? “You’ll need a boat. Bring water, bug spray, and proper insurance. And understand what you can legally build before you buy.”

Click here to check out two islands you can buy right now (one for just $114,000).

This week, we head to Alamo City to hear from Daniel Cabrera at Sell My House Fast TX.

Average home price: $245,251 (Down 3% YoY)
Homes that sell over list price: 13.2%
Homes that sell under list price: 64.3%
Average rent: $1,620/month

The pros: “San Antonio is a great spot for investors: We’ve got a steady flow of people moving here and jobs popping up thanks to strong demand drivers like [Air Force base] Joint Base and our main job sectors of healthcare, education, and logistics,” says Cabrera. “Plus, entry-level prices are still reasonable.” He recently bought a single-story 1970s home in Northeast San Antonio for $210,000 and spent $34,000 fixing it up. It’s now rented for $1,950 a month.

The cons: Older homes can get hit with curveball hikes in insurance and taxes that can impact underwriting. Some properties are so run-down, they’re more trouble than they’re worth. Cabrera recalls one foreclosure he bought for $175,000, where the homeowner refused to leave—and kept an ornery goat on guard. “When I saw the goat, I was like, ‘Oh, s--t,’” he says. It took him five months to evict the owner and her many animals, goat included.

His advice: “Underwrite conservatively and definitely get a sewer inspection for any home built before 1980,” Cabrera says. “Properties can linger on the market for a while, so you’ve got to be realistic with pricing and open to making some concessions.”

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