How to Negotiate Buying a Home

Posted by Anonymous , 9/4/2007 Tags:NegotiateBuyingHome
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How to Negotiate Buying a Home

Introduction

Buying a home is the best investment anyone can make, but it can be complicated. The red tape involved, coupled with financing and third and fourth parties to the sale can make it difficult to negotiate the price and sale terms. Nonetheless, a buyer should always remember that she, not the person selling the home, is ultimately the person in charge of the sale.

Instructions

Difficulty: Moderately Challenging

Steps

1

Step One

Find a real estate agent you trust. Choose an agent with years of experience in the area in both buying and selling. Use the real estate agent's experience with local real estate to choose a lawyer with similar experience in local buying and selling.
2

Step Two

Decide what terms are the most favorable for you. Use your real estate agent's knowledge of who has the most bargaining power in your areaa??-either the buyers or sellers.
3

Step Three

Schedule a thorough home inspection. Use your agent's connections to pick an inspector with a reputation for being picky and generating a thorough report. Use the report to negotiate a lower price for the items that need repair or replacing.
4

Step Four

Make an initial offer on the housed lower than the asking price in a buyer's market and slightly higher than the asking price in a seller's market. Consult your real estate agent for a realistic price estimate.
5

Step Five

Counteroffer, if the first offer isn't acceptable. Remember that if a seller is willing to counteroffer, he's open to negotiation.
6

Step Six

Review the contracts before signing anything, and make sure that the terms are fair to you. Sign the contracts only after the real estate agent and lawyer have both explained the terms to you in language you can understand.

Tips & Warnings

  • Keep in mind that the agent does work on commission and could suggest a price slightly higher than is reasonable.
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