There’s more to negotiating a real estate contract than just the sale price. Financing terms, attached property, length of closing, home inspections, and repairs are just a few of the items that can affect the purchase of your next home. An experienced broker can make the difference during this process and we assist you with all of these details.
There are six primary negotiating points a buyer can work with when putting together an offer on a property. Each point is outlined below. You want to use the right combination of elements to create the most compelling offer the seller receives. We will assist you in structuring a strong so that you get the best value for your money.
Price: Is the actual dollar amount for the property. This does not include the closing costs or any financing costs that you may incur.
Closing Costs: is the expenses to both the buyer and seller for closing the real estate transaction. This cost is separate than the actual price of the property. Generally the buyer pays the closing costs.
Cash: Cash is the primary method of payment to a seller for buying their home. It is generally in the form of a loan payment from a lending institution. However, if you have the ability to pay in all cash down and avoid the lending process, you can often ask the seller to discount the price because it simplifies the closing process.
Financing: Financing is usually in the form of your loan. You may also be able to get financing from your seller in some situations.
Timing of closing: Is usually when the property will close and ownership changes hands. You have the most leverage when you can match with the sellers timing needs. If everything in order ahead of time you should be able to close faster.
Contingency: Contingency is an event that must take place before the contact can go through. You should try and remove as many contingencies as possible. The primary contingency you should be able to remove is around your financing. If you have been pre - approved for a loan you have already met this requirement.
Counter Offer
A counteroffer is a response to an offer. Most real estate transactions go through a series of offers and counteroffers. A counteroffer is a sign that the seller has taken your bid seriously and believes you are close to a deal.