An important component is a Comparative Market Analysis (CMA), which your real estate agent can provide—another benefit of working with a buyer’s agent—and is a mathematical model to find out the value of your future home. It calculates the basic conditions, such as number of bedrooms, bathrooms, existence/size of the yard, or swimming pool. Then, it compares your potential home to similar houses on the market in your area. This model will give you an idea of the average local cost, which will be fundamental information to inform your offer. After the approximation, add or remove the components that increase or decrease the value. For example, you know that the current owners have recently changed all the plumbing in the house. Or the opposite, their plumbing is fifteen years old and could potentially start breaking down soon. Get estimates for any immediate repairs necessary. The real estate agent’s services will be very helpful here in particular. It will not take a professional as much time to evaluate all the pros and cons and come to you with a proposal. Your real estate agent will assist in this analytical process and usually with the decision itself. The agent may advise on your offering price and the right adjustments for the various factors involved. After you agree on a price, the agent will send the proposal to the seller or seller’s agent. The seller or seller’s agent, will either accept it, or present you a counteroffer. Negotiations will go back and forth until all parties agree and execute with their signatures. After that, the home buying process will move into escrow.
NEGOTIATING THE PRICE: WHICH TACTICS TO USE
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