Real Estate --- Purchase Negotiations
Many sellers are a bit nervous when their first offers come in to
buy their home. Theyíre not always as high as a seller may have
hoped. However, itís important to remember your negotiating power.
Any real estate contract can be negotiated.
You can oppose the offer by asking for what you want. The real
estate agent is obligated by law to present to you any offers which
may come into their office. Agents have to show all offers no matter
what they think of them. You may not like some of the offers you
see. This is fine. At least there are interested parties. The time
to get scared is when there are no offers.
Let's say you are offering your home for $745,000. The market
analysis showed that this was a legitimate price for your
neighborhood. The buyer has presented an offer of $725,000 and has
asked for certain things. They want you to pay the closing costs and
three points. This is not really a great offer. It could be worse,
but it is not one you should say yes to. It is also not one you
should just rip up and storm away from either.
Stop and think about it for a moment. You know you have someone who
is interested in your home. This is a good sign. You need to figure
a way to save the deal and make everyone happy.
You already expected that you would look at offers under the asking
price. You also knew you would accept the first one which offered
$739,000. Time to get your agentís professional opinion prior to
countering the offer. You may offer to pay the closing costs and the
points if the buyer will agree to the full price.
The buyer may walk away from the deal. He may also decide this is
perfect and accept it. You can only see what the outcome is. The
buyer may also decide to oppose the offer again. This is how the
negotiations work with a real estate deal.
You may also feel you are bound by just the paperwork of the
original contract. This is not true. You can add an addendum to make
sure everything you and the buyer have agreed upon is in writing. By
adding an addendum you know exactly what is set between both
parties. This means there is less confusion. Each party involved
understands what is happening. No one can claim they did not
understand the contract.
You must know while the paperwork is under negotiations, it is an
agreement. Once everything has been hammered out and agreed upon
with signatures from all the parties involved, it becomes a
contract. This contract is upheld by the courts. This is why
negotiations are crucial. You want to make sure everything you want,
need, or expect to be done is worded in the agreement so everyone
understands. After the negotiations, you are bound by the contract.
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