2torial #0935:
Learn2 Buy a Home (continued)

Settle on a price

Some people hate to haggle. If that's you, get over it. Sellers rarely accept your first bid. And if they do, you'll always wonder if you've paid too much.

Once bids are made, the seller has three options: accept your bid, reject it, or come back with a counter offer. If you receive a counter offer, negotiations have begun. At this point, pre-approval for a mortgage can really pay off. Another buyer could make a higher offer, but the seller may prefer to do business with you instead, knowing you can follow through.

The bargaining process can go several rounds. Don't get so caught up in the process that you raise your bid to a point where you won't be able to comfortably afford your mortgage payments. Likewise, be sure you don't sign away your right to require the seller to perform important services--for example, any needed structural repairs due to pest damage--without serious consideration.