Price Negotiation

What market is the real estate in for the region?

  • Is it a buyer’s market or a seller’s market or is it a market where housing supply or demand are equal. The position to be in is the one that benefits your position as a buyer or seller.

What about financing?

  • Get pre-approved for a mortgage loan. That means your mortgage lender has reviewed your application has verified your; credit history, assets, checked employment and income, examined your debt-to-income ratios, and has pre-approved you for a certain dollar amount, terms and interest rate so that you stay within your budget.

Making an offer:

  • Your Realtor® would have asked the listing agent several questions to assist in writing the offer. It’s important to understand the seller’s motivation for selling. What is their urgency? This information will allow for the buyer to get what they want in order to obtain a “win-win” situation. Don’t insult the seller as you never know if you need to go back to the negotiation table. Negotiate with data not an opinion.

    Suggestions to put into the offer as you never know unless you ask but it should be reasonable:

    1. Price reduction
    2. Paying down points for the buyer
    3. Help with down payment
    4. Help with closing costs
    5. Offering a home warranty
    6. Paying future HOA fees, pool maintenance, landscaping
    7. Escrow fee’s

    Sometimes, it’s not all about money that will make a deal work. There are times when a letter to the seller letting them know what their home would mean to you as the buyers.
    As no two transactions are alike.

Negotiating after the 17 days inspection period

  • Your offer has been negotiated and accepted, the earnest money is at the title company. Now you start the inspections after the seller has provided the disclosures.
  • Your offer has been negotiated and accepted, the earnest money is at the title company. Now you start the inspections after the seller has provided the disclosures.
  • The seller are usually not required to bring a house completely up to current local building codes unless changes have been made to the property such as remodeling.
  • If theinspector see that there are issues, it will be require the seller to address, them as they will pertain to an unsafe system or a major repair as needed to make the system operate more effectively.
  • The seller is not required to correct cosmetic issues but has to address what is reasonable explanation of what repairs are being brought up by the home inspector. Here is where additional negotiations needs to take place; have seller repair or provide a credit.

Designed and developed by Saumil Nagariya