Not all people have the savvy to negotiate the price of real estate. Some people think they do, but what they're actually doing is basing their bargaining price from the list price (80% of the list price, or something like that) rather than on facts. Determining the fair price for a house is not only going to be beneficial for you because you won't end up overpaying for a piece or property, but also beneficial for the house seller because you're not wasting their time with unreasonable offers. Here are a few tips to help you arrive at a fair price:

1. What are the prices of recently sold properties in the area? - Find comparable homes to the one you want to buy and check out how much they sold for. The more current the data, the better, although getting historical records from the past two or three years can also give you more insight on the real estate market trend in the location. It's important to find comparable homes. for example, if you're looking into buying 1,200 square meter, three bedroom Carlsbad real estate, look at Carlsbad homes for sale which are comparable to the specifications. There will be variations depending on the appearance and condition of the house, but more or less you'll find what you're looking for when you have good points of reference.

2. How many properties are waiting to be sold and how long have they been waiting? - Properties that have been waiting to be sold for a long time may indicate that the owner could be eager to sell at a lower price. This isn't always true, some owners aren't in a hurry to sell their property unless they get the price they want for it, but it's worth a shot to offer lower on the basis of how long the property has been sitting in the market.

3. Is the property FSBO? - If the property is For Sale By Owner (FSBO), you may have a better chance of lowering the price of the property, depending on how it compares with other properties of the same specification within the same location. If the price is already lower than others, it probably means the owner already deducted the amount that's supposed to go to a real estate agent. Usually the commission rate is around 6%, depending on the agreement between the real estate agent and his/her client.

4. How do you feel about the price? - You can rationalize the price all you want but sometimes you just either feel right about something or not. Don't ignore this feeling because ultimately, you're going to have to live with the decision you've made. If you feel like you're not getting your money's worth for the property, check out other properties first and see if you change your mind about it. Keep in mind that you'll be dealing with the mortgage of the house for a long period of time. It's important that you feel right about something you'll be dealing with for 15 years or more.