When the price is right ... act quickly

Should you negotiate the price of a home you are interested in? A question more and more homebuyers are asking.

While every transaction is different, some buyers may be surprised to learn that there will be times when it is appropriate - and even desirable - to go in at the asking price. This is where the expertise of a real estate representative proves their worth.

One of the most important duties of a representative is to provide you with the appropriate research to help you make sound decisions. They can tell you when a home is well priced and whether or not there are comparable alternatives on the market. In addition, they can tell you if there are likely to be other offers competing with yours.

If you have found a great property that meets all your criteria, the asking price is attractive, and there are not any other comparable homes available, you may be well served to go in at the asking price. Buyers should take into consideration that negotiating the price extends the timeline when the home is still open to offers and during this time, other buyers may enter the process. Sometimes the best course of action is to go in at the asking price and conclude negotiations. This is especially true in a hot market with low inventory.

However, what happens if you are interested in a home but think it is overpriced? If everything else is right about the house, do not just walk away ... negotiate! You have nothing to lose and everything to gain by making an offer. If it is not accepted exactly as submitted then you are under no further obligation.

One word of caution - be sure that you have your facts straight before you assume that a property is overpriced. Before you decide on what price to offer your representative can show you recent sales and active listings of comparable properties, as well as advise you about local market trends and conditions.

All this will help you to estimate what price range the home will likely sell for in the current market. In addition, this same information can help to negotiate from a position of strength.