Category: Buy a House.
Tags: buy a home, buyer and seller in real estate transaction, buying a property in Fort Lauderdale, negotiate a deal in Fort Lauderdale, negotiating a sale in Fort Lauderdale, selling a property in Fort Lauderdale
It is commonly believed that a purchase price is mostly only a subject of negotiation in a real estate transaction. It is not entirely true. I would like to discuss some other terms that can be negotiated and help to achieve a buyer or seller’s goals and successfully close the sale of a property.
- Time for move-in – move-out. A buyer, who wants to move in the house quickly, might be willing to pay a little more, instead of waiting while the seller finds a place to live. On the opposite side, a seller who needs more time to stay in the property might take less in exchange of more time in the house.
- Financing for the purchase. If the offer is contingent upon a Buyer getting financing, it is important to have this clause spelled out for each party. Seller should be certain that the financing contingency is based on reasonable economic conditions (rate, type of mortgage, down payment). The financing contingency, usually, has two parts to it: 1). Buyer should secure the financing within a specific number of days; 2). the mortgage rate can’t be more than a certain percentage. Seller should make sure that a Buyer applies for a mortgage within a certain number of days so if the Buyer is not qualified, the property can be placed back on market without too much lost time. Also, a Seller should to make sure that the mortgage rate is not too low; otherwise, the contract is worthless.
If a Buyer can offer a cash transaction, with no financing contingency, he/she might seek a somewhat lower price.
- Inspections. It is always recommended for a Buyer and sometimes for Sellers to check the property with an independent third-party inspector to find out as much as possible on a house’s condition. The inspection findings can be a base for renegotiating. For Buyer: if the findings are not satisfying, he/she will want a deposit back promptly and in full. At the same time Seller should specify the time period for such inspections where the Buyer gets it done promptly so the property is not put in limbo. If a Buyer waives the right to inspect, the offer becomes somewhat stronger without this contingency.
- Fixtures and appliances. What will be conveyed with the property has to be spelled out clearly in the contract. These items can be key bargaining tools.
- Closing costs. Even though it is locally customary who pays what at closing (items or percentage), it still all open to negotiation.
The role of a Realtor is to facilitate agreement between parties. The goal or purpose to successful negotiating is always an agreement, which implies a “win-win” outcome. When this is achieved, the outcome is successful, people commit to what they’ve agreed upon, stress is reduced, successful relationships and personal happiness is more likely, and people feel satisfied!
Call me with any questions at (954)993-1027