When the time rolls around for the seller and buyer to negotiate the
real estate contract, times can get a little hard. Each party is
extremely eager to get everything they want exactly the way they want
it. However, it�s important to remember that the term is NEGOTIATION,
and that tension doesn�t need to happen at all. If both parties try to
reduce stress, both sides will likely be content with the outcome and
the rest of the process will proceed smoothly.
There are some things you should remember when entering into contract
negotiations. Here are a few pointers to help achieve positive results
in creating a good real estate deal.
* Determine what you are trying to achieve.
a) a better price for everyone
b) closing as soon as possible
c) move into or out of the home in a timely manner
d) ensure a quality home with repairs and updates done
* Negotiate with reason not emotion
a) do not get angry
b) compromise fairly
c) do not be judgmental
d) make every point clear and understood
* Try not to negotiate standard or normal policies
a) If it is normal for the sale to be contingent upon an inspection, do
not try to negotiate this
b) Normal date of possession should not be more than 60 days
c) The seller usually pays for the title search while the buyer pays for
the appraisal is normal
* Listen to both sides of the negotiating table
a) The buyer may have good reason to make the offer he or she did
b) The seller may need to have more money to find another house
c) Be fair to everyone involved and the negotiations will go smoothly
* Never rule out anything
a) Sometimes a new way of thinking or a new approach may not be such a
bad idea
The seller should take a business method to the whole deal. He has a
commodity which is in demand. This can sometimes make it difficult for
him to see the whole picture. When he realizes there are other houses
for sale, he may think about the negotiating terms a little bit
stronger. The buyer can always go somewhere else to find what he wants.
On the other hand, the buyer needs to know the seller has to make a
profit. This will enable the seller to move on.
There are times when the offer may be more than the asking price due to
some financing issues with the buyer. He or she may not be able to
acquire the whole down payment necessary for the loan. By presenting a
higher price, the difference can be counted as part of the down payment.
This is something which can be negotiated during a sale. When it comes
to negotiating a real estate contract there is nothing which is out of
the ordinary. You may have to be a little creative to find a solution
which makes everyone happy, but it is worth it in the end. Your best
move here would be to ask your real estate professional for their
thoughts. A true real estate professional has been through many
contracts and can point out potential problem areas. Heed their
guidance, it could save you thousands!
Return to Brokerforyou's real estate articles