and reach an agreement that all parties are happy with, after which the home-buying process moves into escrow. DON’T MAKE FINANCIAL ASSUMPTIONS. All the negotiating in the world won’t help if, in the end, you can’t afford the home for which your agent worked so hard to get you a bargain. Deals fall apart more frequently than you’d think, even after contracts have been drawn up and signed. Don’t assume “everything will work out,” and never, ever make an offer or accept a counteroffer for something that’s over your maximum budget. You will only lose in the end, even if you get your “dream home.” You’ll get into financial hardship down the road and potentially lose more than just the home. DO YOUR RESEARCH. If you and your agent come to the bargaining table full of research, knowledge, facts, and stats, then you will hold a degree of power over the seller and gain an upper hand in the negotiations. Once you’re ready to make an offer on a home that meets your needs and falls within your price range, it’s time to do some research. Review several comparable home sales (“comps”) in the area and compare them with the target home. This will help in validating the asking price of the target home. You should also check out these homes in person, because the condition of these properties, as well as additional features or missing features, plays a role when you’re putting together your initial offer/price quote. If you research and visit at least a handful of properties similar to the one in which you’re interested, you can take the average price and mention this in your offer. Also research the local housing market trends. For example, find out whether the local market has gone up or down over the last few years. Also, are people buying more, or selling more? Are there houses being built that will soon be on sale? Further, teardowns and new construction would indicate rising local home prices.
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