Home Buying Negotiations - BLUE RIDGE Real Estate

Quick Links

HOME PAGE
HOMES FOR SALE
FEATURED LISTINGS
FORECLOSURES
COMMUNITIES
LIST WITH US
MEET THE TEAM
NEW LISTING ALERT
15 SECOND APPRAISAL
SCHOOL INFORMATION
HOME BUYING
SELLING A HOME
FREE REPORTS
FORMS
HOME FINANCE
FINANCING TERMS
TOOLS
TODAY'S RATES
TESTIMONIALS
LOCAL NEWS
MOVIE TIMES

Communities

ALL COMMUNITIES
BLUE RIDGE
BLAIRSVILLE
CHERRY LOG
TURTLETOWN
ELLIJAY
JASPER
MORGANTON
COPPERHILL
HIAWASSEE
MURPHY
TALKING ROCK
MINERAL BLUFF
DUCKTOWN
HAYESVILLE
YOUNG HARRIS
DIAL

Buying a Home

HOME SEARCH
NEW HOMES
FEATURED LISTINGS
OPEN HOUSES
NEW LISTING ALERT
THE BUYING PROCESS
HOME LOAN PROCESS
FINANCE CENTER
FIRST TIME HOME BUYING
HOW TO HIRE AN AGENT
HOW TO HIRE AN INSPECTOR
INSPECTION CHECKLIST
NEGOTIATING AS A BUYER
TAX BENEFITS HOME BUYING
BUY AS AN INVESTOR
BUYERS RESOURCE CENTER
DOWN PAYMENT ASSISTANCE
BUYING RETIREMENT HOME
BUYING FIXER UPPER
2ND HOME BUYER
BUILD OWN HOME
TYPICAL FAMILY BUYER
SINGLE BUYER
VACATION HOME BUYER
HOME MOLD INSPECTION
REMODELING
HOME INSURANCE

Selling a Home

WHY USE US
WHY LIST WITH US
WHAT IS MY HOME WORTH?
WHAT WILL MY HOME SELL FOR?
WHICH AGENT IS BEST
SELLING YOURSELF
SETTING THE PRICE
HOME STAGING
SELLING PROCESS
NEGOTIATING AS A SELLER
TAX IMPLICATIONS
1031 TAX EXCHANGE
SELLERS RESOURCE CENTER
SELLER ASSISTED BUYING

Home Loan Center

HOME LOAN CENTER
LOAN PROCESS
TYPES OF LOANS
TYPES OF LENDERS
0 DOWN
VA VET LOANS
FHA HUD
COP NEXT DOOR
NURSE-DOCTOR HOME LOANS
TEACHER HOME LOANS
MILITARY HOME LOANS
SINGLE PARENTS
STATE SPONSORED
GIFTING PROGRAM
POOR CREDIT
RAISE CREDIT SCORE
ESCROW
CREATIVE FINANCING

Property Spotlight

1 of 5 photos
Ellijay For Sale
$7,900
0 Beds / 0 Baths

Buildable, Gentle Wooded Lot that has new survey & soil test complete...

more >>

View All Our Picks >>

Home Buying Negotiations

The art of negotiation for buying a home is exactly that, an art. It takes a keen understanding of the process in order to be good at it--and before you begin making offers on homes.

When it comes to Real Estate matters, the 3 most important aspects of an effective negotiation are:

1) Information
2) Preparation
3) Realism

Being a good negotiator does not come naturally to most people--it must be worked at--is the first step in becoming one.

CMA's--Comparable Market Analyses

Once you have found a home that you are prepared to buy, the first step in your process of negotiation is to determine a fair value of the home. Your Arizona Properties of Distinction Agent can be of great help. Real Estate Agents have access to the information that you need with a Comparable Market Analyses (CMAs). A CMA will show exactly what properties similar to the one in which you have an interest have sold for. These analyses are based on fact, rather than opinion, and that information will always be of more value to you. The CMA which you obtain will most likely give you some general information about the houses that will be compared: Number of bedrooms and baths, square footage, the listing price and the sold price. It is important that the CMA focuses on houses similar to the one you have selected. If you are interested in a 4 bedroom, 2 1/2 bath 2 story, a CMA that lists only 3 bedroom 1 bath homes is of little or no value. Likewise, a CMA that includes a number of properties from a neighborhood 2 miles away will have limited value. To have a good CMA you must have all of the similar sales in the neighborhood in the last year. Obviously, the fresher the data (the more houses sold in the last few months), the better the CMA.

Condition

Once you have the information in hand, it is important to drive by all of the properties that are listed to see the condition, this has much to do with the ultimate selling price of a house. Does the home in which you are interested shine above or fall below the others that have sold. Size, number of rooms, and lot size can only tell you a lot.

Motivation

An effective negotiator will gather as much information as is available on the house and the sellers. Obviously, one of the most important pieces of information you can have is the seller's reason for selling. Is it a case of having to sell or wanting to sell? If your Agent represents you in the transaction as a Buyer's Agent, they may or may not be able to secure this information for you (it depends on what the seller and the Seller's Agent want to reveal). Even if this information cannot be revealed to you, a friendly discussion with one of the neighbors may give you a feel for the situation.

Preparation

Just having the right information is not enough. You must prepare yourself in order to use it effectively. The most important factor in your preparation is your emotional frame of mind. Buying a house is emotionally charged enough, without adding to everything by letting your emotions override your common sense. It is not unusual to be excited--in fact, it is normal--but you must keep your excitement in check or you will lose the value of all the information you have gathered.

In addition to your emotional frame of mind, your financial frame of mind should be in order. An offer to purchase will carry a lot more weight if there are no dangling financial problems and if you have been pre-qualified for a mortgage.

Finally, plan your work and work your plan. Organize your information and have it quickly available. When it comes time to make an offer, you don't want your "ammunition" scattered on scraps of paper in the back seat of your car. Again, familiarize yourself with offers and contracts, since this is how you will be negotiating.

Realism

Don't throw away all of the information gathering and preparation you have done by making a strange offer on a well priced home. Nothing will turn a seller off more than a low ball offer on a house that has been realistically priced. Often, negotiations will stop, rarely to be revived again. If they are re-opened, the sellers generally will show their displeasure at the initial low offer by locking at or near the listing price.

Conclusion

All and all if you prepare your self, negotiation for your next home should come much easier.