The 3 Stages of Home Negotiations
When you're buying a home, there are a lot of things that need to be negotiated. From the initial offer to the final purchase price, every step of the process is an opportunity for negotiation. This blog post will take a look at the three main stages of home negotiations: the initial offer, inspection, and appraisal.
The Initial Offer
The initial offer is where you first present your offer to the seller. This is usually done through your real estate agent, who will work with you to come up with a fair and reasonable offer based on comparable homes in the area. Once your initial offer is submitted, the seller will either accept it, counter it, or reject it outright.
If the seller counters your offer, they will usually come back with a higher price. This is where you'll have to decide whether you're willing to pay more than your original offer or not. If you're not willing to budge on price, you can try to negotiate on other terms, such as a shorter escrow period or requesting that the seller pay for certain closing costs.
If the seller rejects your offer outright, don't be discouraged! This is actually quite common. It doesn't mean that they don't like you or that your offer was too low. In many cases, the seller may just be trying to start a negotiations at a higher price point. If this happens, you can either try to negotiate on price or walk away from the deal altogether.
After your initial offer has been accepted (or your counteroffer has been accepted), the next stage of negotiation is the inspection. The inspection is when a professional assesses the condition of the property and looks for any potential problems. Once the inspection is complete, you will receive a report detailing any issues that were found.
At this point, you have a few options. You can ask the seller to make repairs before closing, request a credit from the seller to cover the cost of repairs that need to be made, or walk away from the deal entirely if you have an inspection contingency in place. It's important to remember that you are under no obligation to buy the home just because you've had an inspection; if there are major problems with the property, you can always back out of the deal.
The appraisal is when a professional assesses the value of the property. The appraiser will take into consideration things like location, square footage, and recent sales of comparable homes in order to come up with a fair market value for the property.
If the appraisal comes in lower than expected, you may be able to negotiate a lower purchase price with the seller. On the other hand, if it comes in higher than expected, you may want to consider asking for additional concession from the seller (such as paying for closing costs).
No matter what stage of negotiation you're in, it's important to remember that you don't have to accept the first offer that comes your way. By being patient and knowing your bottom line, you're more likely to come away from the negotiating table with a fair deal.
Buying a home is a big undertaking and one that requires a lot of negotiation! By understanding the three main stages of home negotiations initial offer, inspection, and appraisal you'll be in good shape to get the best deal possible on your new home. Make sure to work with a knowledgeable real estate agent who can help you through the process and fight for your best interests.