CHAPTER 6 Negotiation: The Dos and Don'ts So, you’ve pre-viewed dozens of homes; you went to several open houses; you may have talked to builders; you’ve found the ideal neighborhood, and you’ve searched for the best available offers. Or maybe you were lucky, and it was love at first sight, and you're eager to close the deal as soon as possible. Congratulations! But before the closing comes the most critical and challenging part of the home-buying process: the price negotiations. You know how much money you have and your available financing options. You likely know how much money you wish to spend for the home you fell in love with. If you're a first-time home buyer, a veteran, police, or military employee then special federal programs and state loans could help you with the down payment and mortgage interest rates. Considering all the opportunities and possibilities will give you flexibility during the negotiation process.
MAKE YOUR FIRST OFFER THE B FFER THE BEST OFFER
Making your first offer is an important step that needs significant preparation and analysis. Go in knowledgeable and consider all the components of your offer when submitting the proposal to the seller. When you work with a real estate agent, he or she will do the negotiating on your behalf. A Comparative Market Analysis (CMA), which your real estate agent can provide, is critical to finding the right price. It calculates the primary conditions such as the number of bedrooms, bathrooms, existence/size of the yard or swimming pool, etc. Then, it compares your potential home to similar houses on the market in your area. This model will give you an 33
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