how do i negotiate a home purchase (real estate)? How do I make the best deal? What are warning signs to watch

Answer 1

Always decide your price range first. Then location, location, location. After that, look for your house. When it comes to negotiating, just remember that the person who cares the least has the most power. In other words, when you find the home that meets your requirements in your price range, look at the asking price and bid downward from there. The person selling the house is selling for a reason. Put your bid in and walk away. If it is meant to be, it will happen. Be realistic in your bid though. I probably wouldn't bid more than $10,000 lower than the asking price. Make sure you hire a lawyer and an inspector. That is even a more important investment than the house. That will protect your investment.

Good Luck!

Answer 2

Check with local governments and get all printouts that you are allowed. It is public information. You may be able to find out when the house was last purchased and for how much. Then you can guess what they would take. Start with a low-ball offer. At least 25% less than asking price. Don't worry about insulting the seller. They can counter offer. But if you make your first offer and they accept, you offered too much and are paying too much. Study the Sunday paper to determine what similar homes are listed at. Don't rely on a real estate agent to tell you what a good price is. Would you believe a used car salesmen telling you what a good price is? They both work on commission. Make sure you have an inspection clause. Then get your own, independent inspection. If it comes back bad, you are off the hook and you get your deposit back. Don't use an inspector recommended by the real estate agent. An inspector who rejects the condition of too many houses, doesn't get calls from the real estate salespeople. So that inspector may 'rubber stamp' the inspection to stay on the good side of the realtors and keep the fees coming. I know this sounds distrustful, but with hundreds of thousands of your money on the line, and thousands in realtor commissions on the line, it is best to not trust your fellow man.

Answer 3

In addition to looking around on your own so that you at least have a general idea of the values in the area, the best method is find both a good agent and lender by asking for referrals from friends and family. Never go straight to the agent who has the property listed. Use a buyer's agent. The reason a lender should be involved is that there is a lot more to whether you have the "best deal" than the price. You have to figure in how much money you have to bring to closing and how your mortgage fits into your long term financial strategy as well. You should use a lender that will get you completely pre-approved rather than just prequalified because that will put you in a much stronger bargaining position than the average buyer making an offer.

Answer 4

I would highly suggest using your own agent (called a buyers agent). In your question you use the term "Best Deal"! That depends on your situation. Being a real estate investor I would go the other way. The most problems people have are getting into the home. Have your Buyers Agent show you the "Comparative Market Analysis" of the neighborhood and then offer the asking price or very near to it. Then ask in the contract for the seller to cover your closing costs. Ask for them to pay for the home inspection, all insect infestation repairs. Ask them to leave all their appliances. Ask for the seller to fix the repairs needed or to give you cash (tax free, in most states) at closing for repairs (roof, carpet, paint,etc...), buy a car, take a vacation...going cheap very seldom produces good results. Try to make situations WIN-WIN!!! You would be amazed at what you can get a seller to do for you when you offer full price for there property, especially in a "Buyers Market" which is what we are in now. Plus, if you haven't over spent for the house, you have done your new neighborhood a great deal in helping every ones values go UP! Trust me, when you own your own house you always want to see the houses around you selling for more then yours not for the same and never less. When your neighbor's house sells for more then yours that raises your equity! That's the easiest equity you will ever get. Remember the golden rule though: LOCATION-LOCATION-LOCATION
WARNING SIGNS: A home inspection is a "VISUAL INSPECTION"! Though I always have one done...remember that the guarantee is only on what the can "SEE"! Ask how long the inspection will take. If it is less then two-hours call someone else. Try to get someone who has been in the construction business and a good inspection will take around two-hours. You need to be present for the inspection. Most inspections have to be done with-in 10 days of making your offer.

Answer 5

Don't hire Clifford G. Make offers 25% below asking?? Don't worry about upsetting the seller - they can counter? At 25% below asking, believe me, they won't counter! They won't even acknowlege your offer. Flippers do this and they go through probably a hundred homes searching for that one desperate seller before they get a nibble.

Yes, agents are on commission but Clifford gets it wrong when comparing agents to used car salesmen. Sure there are bad apples in real estate, just like there are in Clifford's industry. By and large, real estate agents are good people looking out for your best interest. Like anything, get a recommendation from a friend or family member who had a positive experience with an agent.

Answer 6

My program teaches you how to negotiate deals like a Swat Team Leader - you can find it at the link below.

Flipping houses is a great profession to be in. I currently flip houses for a living, and have had a blast making hundred's of thousands of dollars. The key is to do as much work as you can on your own.

Did you know that you can make $40,000 + on a house, and never even own it?

Take a look at my website - I just put it online last month -

Please realize that Flipping Houses is not a "Get Rich Quick" Scam!

Do as much research as possible before starting on your first flip -

http://www.learntofliphouses.com

Kind Regards and Good Luck!

Adam Monforton

Answer 7

You need to know the true market value of what you are buying. If you've looked at enough homes, you'll begin to see what this one is worth.

Make sure all the details of the purchase are in writing. Make sure the contract states it is subject to an appraisal and you can get your money back if you are overpaying (or you can lower the price). Then make sure your lender is getting appraisal done in your best interest (you can pick the appraiser yourself, but the lender has to order it)

Warning signs include being rushed or hurried to sign or agree.

Answer 8

Get an agent. Just make sure to get one you trust,and who keeps you informed. They will do the work for you, and the seller is paying them so it is free. They have access to all the paperwork and tools to valuate the house, neighborhood, etc. They can negotiate your house price, advise on a loan, and should know when something is wrong. They will walk you through the process.

Answer 9

I know a good real estate agent that can help you out. Please email me with your contact information at [e-mail]


http://www.realestateagentlive.com/
http://www.diversifiedlender.com

Answer 10

ALWAYS have a lawyer to do all your "home" work or you will pay when you try to sell years later.