subject: Home Buying: How To Negotiate A Purchase Price [print this page] After you make an extensive search and visits to, for instance, Downtown Orlando Homes for Sale, the next big step that will be very stressful and frustrating is the negotiation stage. But you should not be disheartened with the stress and problems that you might experience in the home buying process. Yet, it is very tedious but it would be better if you look at the frustrations as challenges and motivations so you can enjoy the process more. The negotiation stage is one of the most frustrating parts of home buying so be sure that you are well-prepared to surpass all these challenges. If you want to close that deal for the Downtown Orlando real estate you really want, be sure to follow these basic guidelines:
1. Contact your agent regularly
It is helpful if you communicate with the listing agent or the seller regularly so you will always be updated with relevant information regarding your desired property. There are kinds of information that you have to understand about the property which can greatly give you an advantage during the negotiation stage. Most listing agents know about these information so make sure you ask the right questions to them.
2.Look at the CMA
The real estate agent can provide you the most recent Comparable Market Analysis (CMA) so do not forget to ask it from him or her. This report has very relevant information regarding the most recent sales of properties in your desired area. Price information, amenities, square footage and other characteristics of the property is included in this report. It is also helpful if you will make quick research about the latest property sales in the area you want to buy a house. Read the local real estate sections of newspapers so you will be informed about the market trend in the area. Also, try visiting websites of real estate listings such as online Multiple Listing Services like Downtown Orlando MLS so you can see which homes are currently included in the inventory.
3.Determine your purchase offer
The very first things that would be safe for you to do when you plan to make your purchase offer is to identify the maximum price you can offer for the property. How much are you willing to pay for the house? When you know how much are you capable of spending for a property, it will be a lot easier for you to make counter offers. Try to pre-assess the possible mortgage payments you have to make monthly so you will know if you can handle the financing of the house. When you start figuring out your purchase offer, do not forget to also take a look at the insurance policy, taxes and other expenses that you will encounter when you purchase a house.
4.Set your initial bid
The very first bid will always have a huge impact when you start the negotiation process and of course, it should not exceed or be equal to the maximum purchase offer you are willing to spend for the property. Make sure that you estimate well the most reasonable yet lowest offer you can make and then after you put it in black and white, contact the agent or the seller the soonest possible time. Make a smart counter offer in case your first bid gets rejected.
