Once you have your Comparative Market Analysis, crunch the numbers (or have your Realtor® do it!) to figure out the home’s likely market value. This will help you determine what to offer as a purchase price. Is the home’s list price equal to how much it really should be selling for? How much is the most you should consider paying for it? You can pay for a professional home inspection (typically about $400) if you have concerns about the home’s ‘envelope’ and major systems. Such an inspection will provide an estimate of what it would cost to modernize the home and perform any necessary repairs and replacements.Don’t forget to ask the seller whether they have possibly already paid for such inspection – he or she should be able to give you a copy of the results if that is indeed the case.Pressing the Price Down
To be fair, you can actively contribute to the likelihood that the seller will accept a price lower than the one he or she listed. To entice the seller into accepting your offer, make it more attractive than he or she expects to get. Suggesting quick closing, dealing in cash, or agreeing to buy the home in its current state (as opposed to requiring the seller to make last-minute repairs) might all be very good arguments in your favour in the seller’s eyes.Now that you know more about the arguments you may use in price negotiations, read about how to make an official written offer.
