Negotiating a Purchase Price

In negotiating a sales price, you should determine whether you or the seller have the stronger bargaining position. If the local market is active, and there are other qualified buyers, the seller is likely to have the upper hand. If the market is inactive and the seller desperate, you will have a distinct advantage.
Keep in mind that negotiating goes through a couple of stages: an initial ask price (the list price), and then a counter-offer. Like any price negotiation, the seller will ask for more and usually be prepared to lower his price. But he's also expecting you, the buyer, to be offering less than you are ultimately willing to pay.

Negotiating a sale price can be intimidating. Because the stakes are high, however, you should be resolute and constructive in negotiating.

Obtain a building and pest inspection

Once you've found a home that suits your needs, you should have it professionally inspected to detect any problems.

A qualified home inspector will be unbiased, have years of experience and good reputation, and will guarantee the inspection. Some companies even offer a one-year warranty that covers any defect not caught during the inspection. Among the items that should be inspected are:

Structural components:

Foundations, floors, walls, columns, ceilings and roofs.

Exterior conditions:

Wall flashings and trim, doors, windows, chimneys, decks, balconies, steps, drainage, driveway, walkways and patios.

Plumbing systems:

Pipes, drains and traps, showers, toilets and taps.

Interiors:

Walls, ceilings, floors, cabinets, doors, windows and stairs.

Pests:

Inspect for pest infestation such as termites.
Inspectors examine the structural and mechanical components of a home you are considering. The inspector does not examine paint, wallpaper, carpeting, household appliances and draperies.