• ARTICLE INDEX
• First Time Home-Buyer's Guide
• Negotiating with Sellers
• Mortgage Information
• Escrow
• New Construction Homes

NEGOTIATIONS

Negotiations is an area where a professional agent can help make a difference. For you as a homebuyer here are some things to keep in mind as your agent helps you through the purchasing process.

Research the area and the seller's motivations

Do your research. A good agent should be an expert at trying to find out as much of this information as possible and when possible. It is important for homebuyers to know and understand these concepts so that they can work with their agent in doing the proper research and together figure out the right price so you don't leave money on the table. A good seller's agent will be difficult to get this kind of information from, but sometimes neighbors will be more than happy to share what they know.

Here are some tips that will help you know what you should try to find out:

• Why is the seller selling? If you can find out the true reason early on, you are sitting good. Sometimes the agent or the seller will answer this, but the answer the give may only be part of the reason.
• How long has the home been on the market? This allows you a heads up that the seller may be ready to sell for a lower price because they are becoming anxious to get it sold.
• What did the seller pay for the house when the bought it? This helps you to know if the seller may have some room on the deal to negotiate for a lower price.
• What timeframe is the seller looking for and does that timeframe work for you? If the seller needs to move and needs to sell quickly, this will add to your favor as you make your offer.
• What is going on in the neighborhood? Are the schools good? Is there a problem in the neighborhood? Is there something wrong with the street the house is on? Ex: The street the home is on becomes a major thoroughfare during rush hour as a way to bypass the regular road traffic.

Knowing as much about the seller's motives for selling and timeline for selling will give you the edge at negotiating the best price for you. Remember also that the seller's agent may be trying to find out similar information about you. Be sure to reveal little about your circumstances, your income, or when you want to move to the seller's agent or the seller. Also be sure that your agent knows not to reveal this. A good agent will reveal this information only with your permission and if it helps your position at the bargaining table, though it won't be often that it does.