When buying or selling a home there is more to negotiate than just the price, in fact we sometimes see the highest offer being turned away for a more attractive deal. What makes the deal more attractive if its not the price? Let’s talk about the parts of a contract you could and should be negotiating for a win-win situation. Now that we’re in a buyers market with competition starting to slow down and a rise in inventory, buyers have more opportunity to negotiate.
Here are the top 5 things buyers should be negotiating
1. Closing Costs Closing Costs are fees buyers and sellers pay to close on the real estate transaction. Buyers can request their closing costs be paid by the seller. For buyers, These typically include lender, origination, appraisal fees, title searches, taxes and other costs incurred during the home buying process. The total amount varies depending a variety of factors and generally costs between 3%-6% of the total loan amount. These costs can be negotiated with the seller to lower the amount of cash you need to close.
2. Title Company and Title Policy Fees As a buyer in todays market, you have choices. Buyers can choose to work with the title company of their choice, you can request the seller to pay for the title policy, insurance and fees. These fees pay the title company to review, adjust and insure the title of the property.
3. Option Period and Fees When buyers purchase a resale home it is always a good idea to negotiate an option period to take a closer look at the home such as flood maps, zoning, assessing risk and discuss potential problems and potential solutions. During this period it is always a good idea to hire a third party inspector to inspect the home for any deficiencies and needed repairs for broken items. The option period is a negotiated length of time for the buyer to assess the home for a negotiated rate. Generally an option period can be between 5-7 days.
4. Repairs and Renovations Once the home inspection is complete and you are still within the option period you can request repairs or renovations by the seller. Buyers will want to assess what deficiencies are most important to them, assessing what items are broken and what items may be costly to repair in the future.
5. Appliances, Fixtures and Furniture Sometimes what makes a person fall in love with a home isn’t just the home itself, but rather what is in the home. “Fixtures” are anything attached to the home such as chandeliers, curtain rods, ceiling fans, security systems etc.. Fixtures stay with the home unless stated otherwise by the seller. Buyers can request to include appliances, fixtures or furniture or purchase from the seller.
Each real estate transaction is unique and our agents at Homes with Hall Realty are ready to confidently navigate and negotiate to help our community make it a win-win for all.