We’ve discussed several aspects of home buying in the last few blog entries. We’ve addressed the variety of mortgage types, why pre-approval is important and how interest rates work. This week we plan to focus on the skillful art of negotiating your home price. This topic is typically a hot-button issue with both buyers and a sellers alike and understanding how to artfully negotiate your way to a price you both can live with takes more than simply throwing numbers into the wind.

Over the next week we’ll identify tips to negotiating the price you want. On the flipside we’ll also help you see where home buyers go wrong when trying to negotiate price and how to avoid making those mistakes. You also should know that you aren’t alone when it comes to price negotiation. We can help you indentify real estate professionals that can offer assistance and advice on how to get the optimum price for your real estate purchase.

Some tips to consider before making an offer or negotiating a price:

• Comparable homes/properties in the area. Ask your Realtor to provide you with several examples of comparable properties for sale in the area. You’ll want to review properties that contain the same land square footage, building under air square footage, building age, amenities and upgrades. If you aren’t working with a Realtor you can research comparables on sites such as www.realtor.com, www.costar.com or www.zillow.com.
• Know your market. Obtain property records of developments and structures surrounding your potential purchase. Consider property taxes, population growth, schools and municipalities.
• Agree on a ceiling price. Have a set price that you will never exceed. Talk to us about getting pre-approved before you enter into negotiation so that you have a firm grasp on what you can and cannot afford. Don’t forget to take property taxes and insurance into consideration before settling on a ceiling price.

We can help you with every aspect of the home buying process. Contact one of our trained real estate and loan professionals at AmeriFirst at 800-466-LOAN or contact us with your questions.