After you agree on a price, the agent will send the proposal to the seller or seller’s agent. The seller’s agent will accept it or present you with a counteroffer. Negotiations will go back and forth until you settle and reach an agreement. After that, the home buying will move into the escrow.
NEGOTIATING THE PRICE: WHI CE: WHICH TACTICS TO USE?
The goal of your negotiation is to buy a house for the money you’re willing to pay. If you get it for less than you were willing to pay, you have exceeded your goal. Decide upon the maximum amount you can afford, and never offer more. If you spend 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., more houses than buyers looking), you have more possibilities to succeed. You can make a less-than-reasonable offer, demand some house improvements, a better closing date, and even a closing fee payment by the owner. In a seller’s market (i.e., fewer houses are available, with more people looking than selling), you have less leverage, as you’re not the only one in line. You’re most likely to succeed by offering a seller’s price. If they don’t get it from you, they will soon receive another offer from someone else. It's a good idea to find out why the owners are selling the house. Do they want to sell it because they’re moving for a new job? Are they moving soon and thus “motivated sellers?” Has the property price been reduced due to an extensive time on the market? In most cases, they’ll likely want to sell quickly. You can stand your ground if they have a counteroffer.
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