Buying a house is one of the biggest investments you will ever make.  Therefore, it is important to learn the true value of the property and then negotiate the right price and terms.  Here are some tools that can help you:

Use county tax records information sites
Information in country records, allows you to check the legitimacy of seller claims.  For example, a property may be listed as a 4 bedroom, 3 bathrooms, but the county records say it is a 3 bedroom, 2 bathroom.  A red flag should go off in your head.

Look at comparable prices in the neighborhood
Ask your real estate agent, to provide property comparables for your review.  Make sure this includes information on:

  • Active Sales: These are current properties listed in the Multiple Listing Service (MLS).
  • Pending Sales:  These are current properties listed in the MLS in which a purchase contract has been submitted and the buyer is exercising due diligence. The property has not been sold.
  • Closed Sales of Properties from the last six months: Multiple listings and no sales may be a good sign.  Neighborhood stability is the key.

If you are not using a real estate agent, you can do your own research and get comparable home prices on websites for free.

Submit your offer to purchase
Once you have determined a realistic value for the property, there are two ways to make an offer: by price or by terms.

  • Negotiating by price: There is room to negotiate the price and still produce a win-win deal for both the Buyer and Seller.
  • Negotiating by terms: This option does not allow much room for a price reduction, but the Seller can provide better terms for the Buyer.  Examples of better terms could be:
    • The property is sold through seller-financing.
    • The Seller requires “No Money Down”.   The Buyer should negotiate the smallest realistic deposit possible.  In Florida, the minimum amount is $10.
    • The Buyer and Seller exchange one asset for another asset.