Negotiations may not always be pleasant, but they are a necessary part of the home buying process. This according to Texas Lending mortgage professionals, who say the purpose of negotiations is to get the best price for all parties concerned.
Q: Should I use a buyer’s agent or approach the listing agent on my own?
Texas Lending: It’s always a good idea to have an agent on your side. A good buyer’s agent will be familiar with the market and offer you advice on trends and comparable properties so that you can make a more informed decision when it’s time to place an offer.
Q: What are comparable properties?
Texas Lending: Comparable properties, or comps, are properties of similar size, age, condition, and amenities in a particular area, usually within a few miles of the subject property. Your real estate agent should have a comparative market analysis (CMA) on-hand for you to review before making an offer. One of the main benefits of assessing comparable market properties is that it gives you a baseline value per square foot and therefore a better footing from which to hold your negotiations.
Q: Is it appropriate to ask the listing agent why the seller is motivated?
Texas Lending: As far as negotiations are concerned, you may be able to get a better price if you understand why the current resident must move in the first place. If you can pinpoint the cause, you may be able to get a better price, especially if there are underlying tones of urgency.
Q: What are some reasons that negotiations fail?
Texas Lending: Not every offer will be accepted and not every contract will go through. One of the main reasons buyers and sellers step away from a deal is unwillingness to compromise. There is much give-and-take in real estate negotiations and each party must understand they may not receive everything they want.
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