Negotiating a Real Estate Deal
Buying a home can be very daunting, for the simple fact that it comes down to negotiating on a final price. In every real estate sale, there are typically two negotiation periods between the buyer and the seller.
Primary negotiation takes place when the buyer and seller agree on price and closing/possession dates and a written contract has been signed. Both buyers and sellers often feel relieved once this first round has resulted in an agreement, but additional negotiations may be necessary if there are contingencies for financing, inspections, repairs, etc.
The purpose of an inspection is for the buyer to receive an objective evaluation of the condition of the home to identify existing defects and potential problems. Inspections can cost several hundred dollars, so most buyers don’t want to spend that money before coming to terms with the seller. From the opposite perspective, sellers want to know quickly if the buyer may reject the home due to the inspections.
Secondary negotiation takes place when the results of inspections are negotiated. Some buyers will expect sellers to make all repairs listed on the report. If the seller refuses, the negotiation can go back and forth until both parties either come to agreement or the contract falls apart.
When purchasing a new home from a builder, it is expected that since everything is new, it should be in good working order. However, it is reasonable to expect that homes that are not new have a different standard. While it’s understandable that buyers would want to be aware about major items that are not in
working order, normal wear and tear of components based on age should be expected.
In a competitive seller’s market, buyers may make higher purchase offers or be willing to buy a property without asking the seller to make all repairs, realizing that they’re competing with the offers of other buyers. On the other hand, in a buyer’s market, sellers may be willing to accept a lower price or agree to do more repairs in order to make the deal work and sell their property.
For WIN-WIN negotiations, it’s important that both seller and buyer feel good about the transaction, and most importantly, that they’ve been protected by the broker who represented them. Whether buying or selling, as our client, Sea Scape Properties will look out for your best interest.