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 them with the target home. This will help in validating the asking price of the target home. You should also check out these homes in person, because the condition of these properties, as well as additional features or missing features, plays a role when you’re putting together your initial offer/price quote. If you research and visit at least a handful of properties similar to the one in which you’re interested, you can take the average price and mention this in your offer. Also research the local housing market trends. For example, find out whether the local market has gone up or down over the last few years. Also, are people buying more, or selling more? Are there houses being built that will soon be on sale? Further, teardowns and new construction would indicate rising local home prices. Be sure to casually yet professionally include the information you’ve learned during the negotiations; this will give the seller and his/her agent the impression that you know your stuff, putting yourself in a better bargaining position. The more research you’ve done on comparable home sales and property conditions, the more knowledge you have, and the more prepared you will be. Knowledge is power, and you want to hold the power in the negotiations. Hiding the fact that you’ve taken the time to study comps, or not even bothering to do your homework ahead of time, is a big mistake that can not only weaken your bargaining position during the negotiation process, but can also cost you in the end, whether that means paying more for the home you want, or walking away from a potential sale.
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