Buying and selling homes can be both very time consuming and confusing for the home buyer and the seller. One of the biggest headaches for this type of transaction is determining the correct price to list the house for as well as a fair price to buy the house for. Sellers are forced to decide on the listing price for the house. This amount must be carefully determined by analyzing the amount still due, the time frame the house needs to sell in, and the condition of the house as well as the surrounding property and housing values (Chapman, 2008). If the seller sets the selling price too low then they could lose thousands or even hundred of thousands of dollars. If the price is set too high, the house could sit on the market for awhile costing the seller even more money.
Buyers have to do their homework as well.
They need to determine what they can afford, the property and housing values in the areas they may be interested in, and number of homes available in their desired area. If the house is in a neighborhood that has more homes for sale than buyers, the buyer may be in a stronger negotiating position than if the house is in an area with fewer inventories (Chapman, 2008).
The IdeaThe decision to purchase a house can be stressful, so having a clear idea of a buyers' budget and needs are critical to getting the best deal for the most house that fits the buyer's needs. In a search for the right house, a buyer may want to understand how important the number of bedrooms is in terms of the price the seller is asking for the house. Initial data and common sense may indicate that it does affect the listing...