If you are selling or buying a home, it is important to remember that there is more to negotiate than the purchase price. There are many things that can increase the value to a seller or buyer such as:
Earnest Deposit: A seller will likely ask for a higher earnest money deposit from the buyer because it makes it more likely the sale will be completed. An earnest deposit is the amount of money the buyer pays when signing the contract and shows that the buyer is serious about buying the property. If a buyer cancels the real estate contract, most standard real estate contracts allow the seller to keep the earnest money deposit. Of course, a buyer will want a lower earnest money deposit.
Financing: A seller will be more interested in cash offers than ones requiring financing. With a cash sale, the home can close much more quickly. Also, the seller does not have the risk that the buyer’s financing will be disapproved. The next best thing is having a mortgage pre-approval letter from the buyer. While this does not guarantee that the buyer can close on a loan, it makes it more likely.
Sold “As-Is” or with Inspections: The majority of homes are sold after the completion of inspections of the property and the buyer approving the condition of the property. However, in an “As-Is” purchase, the buyer agrees to take ownership of the home without any inspections and in its current condition. It is more common for a real estate investor to purchase a home “As-Is” than it is for a buyer looking for a new primary residence. However, buyers who have the necessary skills to assess the condition of the property on their own, can likely save money when purchasing a home in an “As-Is” condition because the seller does not have to worry about passing inspections
Timing Considerations: Different things concerning “timing” can be negotiated. How much time is needed or provided for inspections? When must the buyer receive a final commitment from the lender? When will the purchase be finalized?
Home Warranty: A home warranty is a contract with a company to repair items within the home if they break during the contracted time period. These warranties may cover only the major components (such as electrical, plumbing, heating and air conditioning) or they may cover everything including repairs to household appliances. While a home warranty costs the seller money, it may make the home sell more quickly.
Closing Costs: If a buyer has limited cash available for a down payment, they may request the seller pay all or part of their closing costs.
Furniture/Household Items: A buyer can ask the seller to include furniture or household items in the home purchase.
Improvements: Did you love the home, but hate the green bathroom? Do you think the flooring needs to be replaced in the kitchen? Although it is most common for a buyer to purchase a home and make improvements after taking possession, a buyer can ask the seller to make these improvements prior to closing. Where this situation arises most commonly is when there is an issue with the home that may prevent it from passing inspections required by the lender. In these instances, a buyer may ask the seller to make the improvements as opposed to doing it themselves, as they will be unable to purchase the home unless improvements are made.
Retain an Experienced Real Estate Attorney:
As you can see from the above, there is much more to negotiate on a home’s purchase than just the price. Let a qualified real estate attorney guide you through the issues regarding your purchase and make sure the contract reflects what you have agreed upon. Give Ms. Hunter a call today.