Negotiate to secure the best home price possible.
Negotiating a property purchase is tricky. According to the online stock screener, Market Watch, it is important to create an offer that will secure a low purchase price without insulting the seller. A buyer accomplishes this by evaluating current home inventory in the area, the repairs needed on the home and other important market details. The buyer must also account for his personal home budget.
Instructions
1. Research the property. According to the Federal Home Loan Mortgage Corporation (Freddie Mac), a buyer's negotiating power is dependent on current market conditions. If the real estate market is strong and homes are selling quickly, you won't have much wiggle room. If the real estate market is weak or the seller needs to move quickly, you will have a lot of leverage. Ask your real estate agent to research how long the home has been on the market and the seller's level of motivation to sell the home.
2. Calculate the highest amount you are willing to pay for the home. According to CNN Money, monthly mortgage payments should not exceed 28 to 33 percent of your monthly income. Use a calculator to determine what you can afford.
3. Account for items that need repair. For example, if a home's carpet is damaged, account for these costs. When writing the offer, include an estimate of the items that need repair to back up your offer amount.
4. Make an offer on the home. Market Watch recommends putting together a cover letter explaining the offer. Your real estate agent can do this. The letter should include how you came up with the home offer. Details such as local inventory, recent home sales in the area and unfinished repairs should be included.
5. Negotiate a counter-offer. The seller will likely make a counter-offer back to you. If her offer is not acceptable, you can make another counter-offer. However, at some point, one of you will decide that the counter-offer is final. This means that if the offer is not accepted, you are done with the negotiating.
Tags: real estate, estate agent, estate market, items that, items that need, Market Watch, need repair
