If you’re a first-time home buyer, there are federal programs and state loans to help you with your down payment and mortgage interest rates. Be sure to work with your agent to determine your maximum budget before making any offers on a prospective home. Learn and know themaximumamount that you are prepared to spend in general, as well as on your target home specifically. After you agree on a price, your agent will send the proposal on your behalf to the seller, or the seller’s agent (listing agent). The agent will either accept it or present your agent with a counteroffer. The goal is that the negotiations will go back and forth until you settle and reach an agreement that all parties are happywith, after which the home-buying process moves into escrow. DON’TMAKE FINANCIAL ASSUMPTIONS. All the negotiating in the world won’t help if, in the end, you can’t afford the home for which your agent worked so hard to get you a bargain. Deals fall apart more frequently than you’d think, even after contracts have been drawn up and signed. Don’t assume “everything will work out,” and never, ever make an offer or accept a counteroffer for something that’s over your maximum budget. You will only lose in the end, even if you get your “dream home.” You’ll get into financial hardship down the road and potentially lose more than just the home. DO YOUR RESEARCH. If you and your agent come to the bargaining table full of research, knowledge, facts, and stats, then you will hold a degree of power over the seller and gain an upper hand in the negotiations. Once you’re ready to make an offer on a home that meets your needs and falls within your price range, it’s time to do some research. Review several comparable home sales (“comps”) in the area and compare themwith the target home. This will help in validating the asking price of the target home. You should
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