where the ownership title is to be changed. The escrow agent is the manager of the trust account that holds the funds that will cover the value of the transaction. The money collected from the buyer is held in escrow until the seller completes their obligations and transfers the title to the buyer. After this, the payment is remitted to the seller. The earnest money is used to cover some or all of the down payment, purchase price, and closing costs.
BUYING STEP #10: Negotiate with the Seller
This is the toughest aspect of a home purchase for many buyers. Here, you will find the help of the real estate agent highly useful. Plan how to make a winning negotiation. This requires thorough market research and is achieved through successful negotiation strategies. Once you find your prospective house and intend to make an offer, review comparable sales in the area. Compare these comps with the target house. This helps validate the asking price. Once you have researched properties similar to the one you wish to buy, take the average price of all the homes and mention it in the offer. It is important to visit the homes you are using as comps before deciding on a price. If the target home has additional features, you need to consider them in the price quote. It is best to mention the comparable sales in negotiations. It will give the seller an idea that you have done your research on this, strengthening your bargaining position. A purchase offer can evoke three possible responses from the seller. First, the homeowner might accept your offer as it is. Second, he might counter the offer by demanding changes. Third,
52
Powered by FlippingBook