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Bartering for Your Home

If you want to know the value of the home you are buying, compare it to other properties in the area that are similar in appearance, size and surroundings. Take a look at some other homes and find out the prices, then go back to your prospective home and compare the differences. Pay attention to how quickly a home sells, what the asking price is and what the home was sold for in the end. If you cannot obtain this information on your own, there are plenty of real estate agents that will be more than happy to assist you.

When you make an offer on a home, the seller will either accept it or come back with a higher offer, closer to the original asking price. More times than not, the seller will not immediately accept your first offer. If you really want the home, you cannot turn and walk away when they do not accept your (first) offer. Purchasing a home is a barter deal. You must use the art of negotiation and you must do so wisely.

You offer $100,000, the seller says $120,000. You say $110,000, the seller says $115,000. Perhaps you will eventually settle at $112,000. If the seller comes to a point where he/she won’t budge, that is the time to make a serious decision. You do not want to aggravate the matter by continuing to ask for a lower price or refusing to come to their price.

If you are not interested, say so and then stop. If you are interested, come to a price you can afford and settle, even if it is more than you wanted to pay. Otherwise you have the chance of losing out on the home or causing unwanted tension between yourself and the seller.

Purchasing a home is not like buying a rug in Mexico. The seller of your dream home may not call your bluff or may not realize that you really want the home. If you give up and leave hoping they will lower the price later, you may call back only to find out the home has been sold.

Remember that if a seller is stubborn about the price, it could be for a variety of reasons. Many sellers have an emotional attachment to the home. It may have been their childhood home, or the home in which they lived with a spouse or child before the person died or went away. It may have been a vacation home with many special holiday memories.

No matter what it was, a person’s home almost always has a place in their heart, and it makes selling it that much more difficult. Emotions are inevitable in the negotiating process, but keep in mind that it is usually the person that keeps his or her emotions in check that comes out the most satisfied. That does not mean you should have no empathy for the seller, as showing your understanding will probably help them warm up to you and consider entering into further negotiations.

Be realistic when you are bartering for a home. Do not make a ridiculously low offer, and do not expect the seller to come down an absurd amount. You should know the approximate value of the home and that should be the range where you barter. If you lower your offering price too much, the seller may be offended and not want to business with you at all.

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