Buy This House

Bargain like a pro when buying your home.

If you've been waiting to buy a house until the hottest real estate market in U.S. History cools down, you're in luck. Interest rates are still near historic lows, and a growing inventory of homes is making it a buyer's market in many parts of the country. The longer a house has a "For Sale" sign out front, the more motivated the seller will like be to negotiate. Here's how to get the best price when you're house hunting.

Know Your Market:

You can't spot a good deal without knowing the market first. Find out what comparable homes are selling for in the area, says Bob Boog, author of Finding Killer Real Estate Deals: Proven Insider Secrets for Investors, Real Estate Agents & Bargain Hunters Like You. Learn what the seller paid for the house when he or she originally bought it.

Real Estate agents can be your allies too. Ask for their impressions of the local market and about recent sales they've closed. You'll also want to know the area's average "days on the market" figure.

Ask about Seller Concessions:

A seller may offer financial arrangements that lower your costs and reduce risk. Many lenders allow deals worth up to 6% of the purchase price.
A seller can:
-Pay your closing costs.
-Pay points to lower your interest rate.

Get Ready to Negotiate:

Your first step is to get preapproved for a mortgage. A preapproval shows sellers that you're serious about buying. Plus, having a commitment from a lender can give you leverage at the bargaining table over those who aren't preapproved.

The asking or listing price is what the seller ideally wants for his house. He may, however, settle for less, depending on local market conditions, how long the house has been for sale and how urgently he needs to move. Don't be disappointed if the seller makes a counteroffer. It's all part of the negotiating game. Review your finances carefully, and don't overbid.

It's easy to let emotions sway you when you've fallen in love with the house, but if the price tag is over your limit, walk away.

If you decide you can raise your offer, ask the seller to throw in something extra, such as appliances, in return. Or ask the seller if he or she will:
-Provide an allowance to cover repairs.
-Offer a one-year warranty on major mechanical systems and physical structures.