How to negotiate a real estate contract
Both buyers and sellers tend to focus on the price of the house, but this is not the only important thing. Other factors to consider are: Who will pay the closing costs? And if the buyer asks the seller to leave his refrigerator or other belongings? All these elements make up the net that the seller will receive from the transaction.
The first point to consider is the deposit (earnest money) and the down payment (down payment) that the buyer will bring. The deposit is a sum of money in good faith that the buyer presents at the time of sending an offer and that will be credited to the closing. The down payment is the money that the bank will not finance the buyer and that will require you to bring the closing day. The higher these two sums are, the buyer shows more seriousness to the seller in completing the transaction.
Closing costs are another item that is usually negotiated. They are the expenses related to financing, insurance, title and lawyer, among others. Sellers will give more preference to an offer that does not ask for their collaboration with these expenses or where the collaboration is not so great.
There are also contingency clauses in the contract that give the buyer a certain number of days to obtain financing, make inspections or even sell another house before buying it. A seller will give preference to an offer that does not have contingencies or that the contingency period is not so long.
Finally, the point of personal belongings can become controversial. It is considered that everything attached to the property is transferred with the sale. Therefore, sellers must stipulate which items will be carried in the move and what personal items they wish to leave. Buyers will also be able to order the items they want sellers to leave on the property.
When you write an offer, keep in mind that the seller will not only look at the price offered, but also all of the other items mentioned above to calculate you’re net. And remember to consult with a real estate agent who will guide you throughout the buying and selling process.