The search for the right home is often a hard and taxing process. A home buyer will need to spend hours researching states, cities, neighborhoods, schools, home prices and even more get a great idea of the specific things they are looking for in a home. Even more, a home buyer will most likely have to really get their hands dirty and go out and see homes. They will need to attend open houses and have the seller’s agent show home after home. When finally the right home is found, the active buyer should not hesitate to make an offer. Most likely once the right home is found, the cost of continued searching will be too high and will most likely not provide and new results. It is best to make an offer.

Unlike the members or citizens of third world countries, Americans are not particularly used to haggling or negotiating for prices. In a free market, such as Americas, competition drives prices down so most businesses and companies or retailers are already selling their product for the lowest possible price. In a housing market there is less of a precise competitive market and the price that the seller initially sets is what they hope they could get for their home given the average price of the homes around them. To find the right price, usually an offer will be made that is lower than the listed price and then the counter offer from the seller is made. This could go on for a while until a right price is found or the offers are rejected. If the realtor represents the buyer, the buyer should make sure and form a strategy with the realtor in order to succeed. If the realtor represents the seller, the buyer should discuss nothing with that realtor as they are obligated by their oath as a realtor to share it with their client.

A great rule of thumb to follow when giving the initial offer as a buyer is to find at least three homes in the same community or neighborhoods that are comparable to the home that the offer is being made on. In the research, the buyer should find out how much lower than the asking price the homes sold for as a percentage and then double that. One does not want to make the offer too outrageous or the seller will not make a counter offer and will just reject the buyer altogether. So for example, if the average between the three homes being researched was somewhere at five percent lower than the initial sellers offer, then the buyer should probably offer around ten percent lower than the sellers original price. Who knows, the buyer might just get lucky and the seller might accept the initial offer from the buyer.

When it comes to negotiations, there is no true magic recipe. The true constant is though that the buyer should not go for anything they do not want and they should try their best to please the seller and make the seller feel like the deal was stellar.

The final word of advice is to make sure that a contract professional such as a lawyer or realtor takes a look at the agreement and makes positive that it will meet specific contingencies like the inspection and right closing date.

Author Bio: Juhlin Youlien writes about Paradise Valley AZ homes for sale, Gilbert AZ homes for sale, Fountain Hills AZ homes for sale and Scottsdale Golf Properties.

Category: Real Estate
Keywords: real estate, homes, for sale, home, house, realtor, negotiations