the seller or seller’s agent. The seller’s agent will either accept it, or present you a counteroffer. After that, the home buying will move into the escrow. 2020 and throughout 2021 has made that process more of a challenge and most sellers have not needed to go back and forth much in negotiations. Many Sellers have multiple offers on their home, much of which are well over the list price. It would be up to you in this type of market to decide if the house you've found is worth competing for. Your real estate agent can help guide you to a strong strategy for an offer that could win you the home.
NEGOTIATING THE PRICE: WHICH TACTICS TO USE
The goal of your negotiation is to buy a house for money you are willing to pay, and if you get it for less then you were willing to pay, you have exceeded your goal. Decide upon the highest maximum amount that you can afford, and don’t ever 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., there are more houses on the market than buyers looking), you have more possibilities to succeed. You can make a less-than-reasonable offer, demand for some house improvements, a better closing date, and even closing fee payment by the owner. In a seller’s market (i.e., there are fewer houses available, with more people looking than selling), you have less leverage, as you are 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 easily receive another offer soon from someone else. It is a good idea to find the reasons that the owners are selling the house. Do they want to sell it because they’re moving for a new job? Are they moving soon and thus “motivated sellers?”
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