What is a First Time Home Buyer

First time home buyer. How do I negotiate the price?

In this case, trust the real estate agent. Negotiation experience is one of the things you picked it up for. Especially if they propose a lower number than expected as they are paid on commission and therefore may be biased the other way.

Part of their job is to look for clues as to how motivated this seller is and what price they may accept as opposed to the price they are hoping for.

And remember, the standard assumption is that the two parties will meet somewhere in the middle, which means that it is common practice to offer 10% less to signal that you could probably be talked into it if they lower the price decrease by about 5%.

This is like a bridge-hand command: it is a semi-formalized system of indications of levels of interest, except with less convention and less rationality.

As for the seller paying the closing costs, this is really part of the same negotiation, and that way, the discussion becomes more complicated for the seller as they have to figure out how much more you need to ask to cover those costs. If they bid, great, take that into account in what you are willing to pay ... but I wouldn't take it or ask for it.

Edit: Yes, unless you have employed a buyer agent (which I recommend for first-time buyers and possibly all buyers), the seller is on fiduciary duty to the seller. However, part of that duty is to enable the sale . If the price is too high and you walk away, neither the agent nor the seller make money.

A bad agent can be just as bad as a bad car salesman. But if you don't like your agent and you trust him for the most part, go to work You with the wrong agent . That doesn't mean you're giving them all of the information the seller wants, but it does mean that you probably want to listen to their posts and understand their rationality before deciding on your own strategy.

keshlam

We agree that we disagree. There are bad agents. Any agent who's been in business for a while and wants to stay in business is in highly dependent on referrals and just can't afford to fool customers.Also note that I pointed out that if they are you like in this case speak to , clearly not going against your interests. If you don't trust your agent, you should either specifically hire them as a buyer agent - which legally obliges them to pursue your interests - or switch agents. Careful, not paranoia.

KH.Lee

If "your first interest is always in yourself", they will try to find one optimal Set price so either Both buyers and sellers are happy to do the deal ... You cannot receive a commission if the deal does not go through. So I can't understand why they would be working against you. (Well, except for very bad agents ...)

keshlam

However, it is legitimate to note that when they are not buyer agents they are technically working for the seller and you want to be careful about how much information you give them about how much you would be willing to pay. Use their advice, but don't tempt them

blankip

@keshlam - Your advice is usually spot on. But that's terrible. Do you trust your agent? Why? I don't think I'd ever trust "any_profession" (I trust people who aren't their references), and I think your real estate agent's trust is very much like your auto salesman's trust.