Tips For Negotiating Prices While House Hunting

Tips for negotiating prices while house hunting. Most buyers narrow their choices down to say three or four houses and first determine which of those choices gives you the house that you really want. First...

First of all, most buyers narrow their choices down to say three or four houses and first determine which of those choices gives you the house that you really want. The second thing you would want your agent to do is prepare a competitive market analysis, otherwise known as a CMA. This consists of three or four homes like the one you are looking at that have already sold. The three houses that you are considering, the three or four you know that you really like and their asking prices. Then a third component that a lot of agents don't throw in, but I think is critical are three or four houses like the ones you are considering that didn't sell. Because the ones that didn't sell that were on the market for about 5 or 6 months almost always tells us what other buyers are not willing to pay. So you probably don't want to pay it either. Now if you are really rich, you can but we know that the appraisal won't hold because, the appraiser has to look at the homes that have sold. So a really savvy buyer will look at these three: the homes that are already sold, the ones that are competitions and the ones that did not sell and make their offer within that range. If you make a reasonable offer that's really close to what homes are selling for and the seller turns you down, you don't want to come back and pay more just to make the seller happy or because they borrow too much on their credit cards and they have a second mortgage on the house. I mean you could, but the appraiser probably isn't going to appraise it for that. And so that's why there is no magic thing about in terms of negotiating. You have a good chance of getting your offer accepted if you make your offer along with what other buyers have been willing to pay. So you might run into a seller who has just got the perfect asking price for what that neighborhood is bearing. Well you're probably going to have to pay his asking price then because he is dead set there. So buyers should make offers in correlation to what other buyers have paid to live in that neighborhood.

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