CHAPTER 9
DOS AND DON’TS OF NEGOTIATIONS You’ve visited dozens of open houses and met
with builders and sellers. You’ve looked for the ideal neighborhood and searched for the best available offers. Now you’ve finally found the property you are willing to pay for. Or, maybe you were lucky. It was a love at first sight and now you are eager to close the deal as soon as possible. Welcome to the most important and challenging part of the home buying process: the price negotiations. Start with advance knowledge of your financial status estimation and available financing options. As discussed earlier, if you are a first-time homebuyer there will be federal programs and state loans to help you with down payment and mortgage interest rates. By this point in your search you likely know howmuch money you wish to spend. Seriously considering all available opportunities and possibilities will give you flexibility during the negotiation process. HOW TO MAKE YOUR FIRST OFFER THE BEST OFFER Making your first offer is an important step and calls for a significant amount of preparation and analysis. Go in knowledgeable, with consideration of all the components of your price offer when submitting the proposal to the seller. You are not somuch responding to their listing price as using your own factors in arriving at your offer. The two are not necessarily related. An important component is a comparative market analysis, which is a mathematical model to find out the real market value of your future home. It calculates the basic elements, such as number of bedrooms,
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