The process of buying a home or a commercial property starts with the negotiation. The seller will always be looking to get the most value out of their property, and the buyer will always be looking for the best possible price. For the two parties to reach an acceptable price and closing terms and finalize a mutually beneficial deal, there usually must be some give-and-take.

Here are some things you need to understand about the negotiation process.

Negotiating a Selling Price

The first step of a negotiation is typically negotiating the price. Whether this happens through a series of signed documents or an exchange of emails, the two parties will typically be trying to find a middle ground between the high price the seller would like to receive and the low price the buyer wants to pay. While it may seem like settling on a price is the hard part of real estate negotiation, it’s really just the first step.

Negotiating Closing Costs and Date

Buyers will typically pre-pay closing costs into an escrow account to cover expenses like taxes, insurance, filing fees, realtor fees, and legal costs. The buyer will usually ask that the seller pay a certain amount towards the closing costs, usually either a flat amount or a percentage of the sale price. That amount or percentage can be negotiated between the parties until an agreed-upon amount is set.

The date of the closing can also be a negotiation, with buyers requiring enough time between offer and closing to allow for inspections, appraisals, and other pre-closing requirements, while the seller will usually want to close as quickly as possible to get their money and avoid making future mortgage payments on the property.

Negotiating Repairs

Unless a property is being sold “As is,” the buyer will have a chance to have the property inspected and ask the seller to make repairs on the property, reduce the selling price, or even walk away completely if major issues are found during the inspection.

Sellers can agree to make some or all of the repairs a buyer requests or can agree to reduce the selling price to allow the buyer to hire their own contractors or make the repairs themselves after closing.

Depending on the financing of the sale, contingencies, appraisals, and other points may enter into the negotiation, as well. Both parties may also have to negotiate with their respective real estate agents to determine how much the realtors will be making on the sale and purchase of the property.

If You Are Considering Negotiating the Sale or Purchase of a Home, Contact the Trusted Family Attorneys at Walker, Hulbert, Gray, and Moore.

Our team can guide you through the process and ensure you get maximum value out of the transaction. Contact us to set up a consultation today: 478-987-1415.

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