Negotiate Your Offer

No aspect of the home buying process is more complex, sensitive, or variable than the negotiation. An experienced Realtor negotiating on your behalf can save you thousands of dollars, protect your interests, and prevent emotions from interrupting the sale.

Offer a Fair Price

In order to know what to offer, instruct your Realtor to perform a competitive market analysis (CMA). A CMA will inform you on the recent selling prices of similar area homes. Next, look at the current market. If it is a "seller's market," you may need to offer at or near the asking price. If it is a "buyer's market," you can often offer 3% - 8% below the asking price.

Negotiation Considerations

Other things to consider when negotiating:

• Why is the seller moving? This can indicate motivation
• When does the seller need to move? Accommodating the seller's time-line may lead to valuable seller concessions
• How long has the home been for sale? Sellers frequently become more flexible over time.
• Can you ask for something that doesn't matter? When you give up something you want, the seller is motivated to reciprocate.

Don't Lose Sight of the Big Picture

Many a negotiation has failed over a $100 item. Don't become so competitive that your desire to "win" causes you to lose sight of your goal, which is to purchase the home at a fair price and with fair terms.

Stick to Standard Forms

Realtors have access to standardized forms which have been developed and approved by the Association of Realtors and the Attorney General's office. These forms are considered fair and comprehensive and won't be challenged in court. Office supply or Internet forms frequently lack clauses necessary to fully protect your interests.