Anyone who has ever bought a home knows just how many negotiations can occur. Price is almost always negotiated, but there are other times when a seller will need to negotiate further. Some of the more common situations are outlined below.
When it comes to the price of a home, sellers have an ideal price in mind, and so do buyers. The goal is to somehow meet in the middle. While a buyer’s “lowball” strategy may work on occasion, many times it is seen as insulting to a seller. The same thinking applies to a seller. If your home is priced to high, it may quickly be scratched off the list when a buyer is choosing homes to visit. A knowledgeable and experienced Realtor will price your home correctly from the start and use their negotiating skills when it comes time to accept or reject an offer.
If a seller has just renovated their kitchen and appliances, this can be a good tool in negotiating price. For example, when a buyer is offering below the asking price, the seller can counter with a higher price and then include appliances to sweeten the deal. This keeps the seller close to their asking price and also gives more value to the buyers offer. Refrigerators, ovens, washers, dryers and even certain pieces of furniture can be used in an offer.
There are a number of common contingencies in real estate transactions. Inspection, mortgage and appraisal are a few examples of these. A contingency is essentially a part of a contract that a buyer can insert that states if certain conditions aren’t met, the contract will not be complete and the sale of the home will not be final. The seller can always negotiate these contingencies further if they don’t want to fork over too much for repair work or if they don’t want to postpone the closing date too far.
If a home is in need of repair or an inspection catches various things, the seller and buyer can negotiate which repairs need to be made. The seller may counter and say they will repair only major structural issues but will not repair cosmetic things.
Closing Cost Credit
Closing cost credits are an addition to an offer or contract where the seller agrees to pay a portion or all of a buyer’s closing costs. This can come in come in handy in a variety of circumstances. One example would be when the home needs repair work or upgrades. If a home’s inspection report comes back and repairs need to be made, the seller can agree to pay closing cost credits in the contract. Rather than have the seller be responsible for making the repairs, they can offer closing cost credits. This means the buyer has to payout less in closing costs which they can use towards making repairs themselves. In inspection contingencies, this negotiation technique also takes the pressure off the seller to have repairs done before closing date.
Real estate contracts will always have some negotiation involved and this is when having an experience realtor is key. These negotiations are one of over 200 reasons why it is in a sellers best interest to hire a Realtor. Realtors have the knowledge and tools to help their clients negotiate the best and well received deals. From deciphering industry legal terms to picking up red flags in a contract that affect a client, a realtor works hard in making every purchase a successful one!