Real estate negotiations can be tedious and downright frustrating, something those who are in the business understand but once it is a done deal, it does yield fruits for the benefit of the investor, seller or buyer.
When it comes to buying a home, the seller wants the highest price possible while the buyer the lowest price but nothing will happen if either or both insists on what they want-they have to make a compromise and meet in the middle.
Before venturing into negotiation (unless you are already an expert in the field) here are the things you may need to know and ask, whether our are a buyer or a seller, courtesy of Entrepreneur.com. Remember that buying a home is an important decision and involves a lot of money, possibly even a lifetime's savings.
Price
Buyers and sellers do negotiate for the best price possible and they normally meet somewhere in the middle. Buyers do not want to over pay while the sellers want to ensure they aren't losing money either based on their financial plans.
Closing costs
Cara Ameer, broker associate and Realtor at Coldwell Banker Vanguard Realty says, "A buyer may ask a seller to pay a flat dollar amount toward their closing costs, or up to a percentage for what's an allowable contribution for a lender. Sometimes this can be up to 3 percent [of what's] included in the mortgage. If [a buyer] asks the seller to make a concession on [his or her] behalf, they're likely going to have to pay a higher asking price."
Closing date
Sellers can negotiate for speped while the buyer's monthly cash flow will be affected once a home is owned. These are things to consider by both parties.
Financing Contengencies
Can the buyer drop the financing contingency? It would be better to have the mortgage preapproved, too as it shows their finances have been sorted out and they can afford the property.
Home Warranty
A buyer can ask or the seller can offer one.
Leaseback
Mazen Fawaz, CEO of OpenHouse, in Santa Monica, Calif says, "If a seller needs a little extra time to get into their new home, [buyers can] offer a zero-cost rent-back for 30 to 90 days to entice the seller to accept the offer over others. Peace of mind is a valuable negotiating tactic."
Home repairs
If the house needs repairs or would have to be bring up to today's standards, the buyer can ask for a lower price. While seller has to tell the buyer on the onset if the house will be sold as is and no repairs will be done.
Appraisal contingency
If there is a mortgage, the seller can push to have the buyer drop the appraisal contingency. But the amount of cash to close has to be considered just in case the appraisal falls short.
Furniture
Whatever is included or excluded has to be indicated in the contract.
Appliances
What may come with the property are the stove, dishwasher, microwave and any built-in appliances but not the washer, dryer and refrigerator.
Inspection
Always opt to have the inspection to avoid any regrets. It may be shorten from 10 days to five though.
Condo/co-op assessments
These are for building maintenance and common areas which has to be settled between the buyers and sellers if there an open assessment.
There you have it. Are you ready to buy your home now?
