proposal to the seller’s agent. The seller’s agent will either accept it, most of the time will reply with a counteroffer or can flat reject the offer. Negotiations will go back and forth until you settle and reach an agreement. Once an offer is accepted the home buying process will move into open escrow.
NEGOTIATING THE PRICE: WHICH TACTICS TO USE
The goal of your negotiation is to buy a house for an amount that you’re willing to pay, and if you get it for less than you were willing to pay, you have exceeded your goal. Decide upon the highest maximum amount that you can afford, and don’t ever offer more. If you pay more than your maximum amount, you have already lost. Depending on what kind of market you’re in, strategy and tactics will vary. In a buyer’s market (i.e., there are more houses on the market than buyers looking), you have more possibilities to succeed. You can make a less-than-reasonable offer, demand for some house improvements, a better closing date, and even ask for a contribution from the seller toward closing costs. In a seller’s market (i.e., there are fewer houses available, with more people looking to buy than selling), you have less leverage, as you’re not the only one submitting an offer. You’re most likely to succeed by offering at the asking price or, if you can, a little above asking. If you really want that house you'll have to beat the competition. It’s a good idea to find the reasons that the owners are selling the house. Do they want to sell it because they’re moving for a new job? Are they moving soon (are they “motivated sellers”)? Has the property price been reduced due to an extensive time on the market?
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