Negotiating the purchase price is important but just as important is negotiating the terms and conditions of that deal so each party not only gets close to what they are seeking but is protected in the deal as well. These terms and conditions can include everything from the price paid for the property to the closing date and special actions. Negotiating different clauses in the deal’s contract could take time, but can end up being beneficial for both parties. Every item negotiated successfully brings the final acceptance of the deal close to fruition. So make sure every item is negotiated in the same win-win manner as the deal itself.
The purchase price is probably the most widely negotiated item of a real estate contract, and we will be talking more about purchase price in the next section. You and your partner will banter about and hope to come up with a mutually acceptable price for the property. If neither party can agree on a price then the deal is a bust. To help alleviate such a situation, either party may present facts mentioned before (or just brought out now) that demonstrate the price is realistic/unrealistic (such as property condition, recent sales or rental comparables), or to accept the price if other terms of the contract are changed, such as waiving the inspection or having a cash only transaction.
Agreement on the closing date is necessary because it serves as the proposed date that a house will be transferred to the buyer and is also a contract termination date if for some reason the transaction fails to close. If a transaction doesn’t close on the specified date, either party may request an extension to the contract.
Home inspections are sometimes part of the contract and things that are negotiated here may be the date the inspection has to be done by, and which party is going to pay for the inspection. Depending on the results, the buyer may ask you to fix items deemed deficient. You could then adjust the purchase price to end the inspection clause negotiations.
Negotiations on financing details are an extremely important part of every real estate contract. Information regarding the purchaser’s loan, such as how much of a down payment the lender requires or the type of loan, can be negotiated to seal the deal.
Other terms and conditions of the deal can be negotiated and added to the contract. Things like the inclusion of personal property, a request for the purchase of a home warranty, or the desire to have the carpets professionally cleaned prior to closing are all value-added items that can be negotiated into the contract to sweeten the deal.
Every offer during the terms and conditions negotiation is subject to the same process of the counter-offer as it is in the initial negotiation deal. Counter-offers demonstrate to the other party that you are seriously considering their offer, but have a few reservations about it. Counter offers can buy you more time, allowing you to accept other offers and keeping the door open to further negotiations.
Of course, there will be times when either of you will reject an offer that seems to create an unreasonable term or condition. The last thing you want to do is accept an offer that is disagreeable or not compatible with your goals. Rejecting an offer does not mean the deal is dead. Either party can always make a totally different offer if they are definitely interested in the house.[/fusion_text]