much you can afford, and then 2) make sure you’re pre-approved for a home loan. Then you and your agent can agree on a price, after which your agent will send the proposal to the seller (on your behalf), or the listing agent, who will then either accept it or present your agent with a counteroffer. The ultimate goal of this process is that the negotiations will go back and forth until all parties reach an agreement they are happy with. Second, do your research beforehand. Remember, knowledge is power! You will gain the upper hand in the negotiations if you come to the bargaining table prepared with research. What do I mean by research? I’m referring to items such as: • Review several comparable home sales (also known as “comps”) in the area to compare with the target home. This will help confirm the listing agent’s asking price. Be sure to check out these “comps” in person, if you can, so you can look at the homes’ condition. This information can help inform your offer and give you leverage. • Research local housing market trends. Learn whether the local market has gone up or down over the last few years. If it’s been years—perhaps decades—since you’ve last purchased a home, then you’ll soon realize that the real estate market has changed considerably. For example, are people buying more, or selling more? Your agent will certainly help in this department. This information you have gleaned can casually, yet professionally, be included during negotiations, letting the seller and listing agent know you are an informed buyer, which puts you in a better bargaining position. Don’t hide the fact that you’ve taken the time to review comps and researched the local market.
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