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San Diego real estate library
Real Estate --- Purchase Negotiations
Many sellers are a bit apprehensive when their first offers
come in to buy their home. They’re not always as high as a
seller may have hoped. However, it’s essential 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 expected by law to present to you any offers
which may come into their office. Agents have to show all offers
despite 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 comparable 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 shred 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 start. You need
to find a way to save the deal and make everyone happy.
You already knew 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 agent’s professional opinion
prior to responding to the offer. You may agree 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 counter 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
stipulated 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 realize while the paperwork is under negotiations, it
is an agreement. Once everything has been discussed 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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