The goal of your negotiation is to buy a house for the money 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 maximum amount you can afford and never 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., more houses than buyers looking at), you have more opportunities to succeed. You can make a less-than-reasonable offer, demand some house improvements, a better closing date, and even payment of the closing fee 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 to a new job? Are they moving soon and thus “motivated sellers?” Has the property price been reduced due to being on the market for an extended period? In most cases, they’ll likely want to sell quickly. You can stand your ground if they have a counteroffer. If the house has been listed several times with a stable price, that’s a sign the homeowners are taking their time and might be waiting for the highest offer. It’s vital to understand that both the buyer and the seller may forget the final goal: to buy and to sell. Sometimes, the parties get carried away in a negotiating battle. Lock your eyes on the ball, but simultaneously, be realistic in your expectations. The following tactics will help you stay focused:
· Use the “middleman.”
When negotiating with your seller's representative, your real estate agent should serve as your intermediary. Using him as a
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