Negotiations to Make When Buying a House

Written by Posted On Wednesday, 02 May 2018 08:48

It is important to negotiate when buying a home because the purchase is often expensive and a home can be a major asset for the buyer. If the party making the purchase does not ask for things they’d like to include in the process of negotiation, they likely won’t end up with it. Negotiations usually begin after a written offer has been made, and virtually every aspect of the purchase can be up for negotiation. The following aspects may be beneficial to consider having included in real estate negotiations.

Price. The selling point may end up near the middle of the seller’s asking price and the buyer’s offer. Sellers usually look for the highest offer while the buyer likely desires a good deal.

Closing date. A buyer may ask to have the closing date fall near the start of the month because a buyer can choose to skip the mortgage payment for the following month; or, a seller may be interested in closing in a quicker manner to obtain their principal from the home sooner.

Closing costs. Prepaid closing expenses are charged to the buyer for insurance and tax purposes and can be as high as 3% of the mortgage, which is why sometimes buyers can request that the seller provide a set amount designated to appliance repair services. However, the buyer will probably face a higher mortgage price by doing so.

Home maintenance/warranty. Homes that require extensive improvements like special cosmetic attention, appliance repair services, foundational adjustments, or other general malfunctions can provide an opening for additional negotiation if the home is not for sale “as is”. A home warranty can act as a protection plan, which may cover any major in home heating and cooling needs if replacement or repair is required.

Inspection. Even the inspection can be negotiated, although current lending protocols do not typically encourage this. Those in the market to purchase a home should be cautious though, as buyer’s remorse may occur if the inspection is waived.

Furniture. Window treatments, patio furniture, light fixtures, and staging furniture such as cabinets can even be points of discussion to negotiate for. All inclusions must be identified in the contract.

Appliances. While appliances that are built-in will be sold with the house along with the microwave, dishwasher, and stove, not all appliances will be included in all markets. Buyers may want to try and negotiate the refrigerator, washer, and dryer.

Co-op/condo assessments. Maintaining the common areas the house may be a part of could require additional negotiation. If an open assessment exists for improving the roof or additional amenities available to residents, the seller could be required to settle.

The terms of the deal will outline the price of the home, the expected closing date of the purchase, items that may be sold with the house, and contingencies. It is important for buyers and sellers to remember that any aspect of the deal can be negotiated until the closing has occurred.

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James Stevenson

Hi, My name is James and I've been involved in the property and real estate industry for 10 years now. I hope people will like to read about my thoughts and experiences in the industry and please contact me if you want to discuss my articles further!

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