When it comes to purchasing land or a home, negotiation is a critical part of the process. Understanding what aspects of the deal are negotiable can help you secure the best possible outcome. I advise my clients on the following 11 negotiation topics…
1. Purchase Price: The purchase price is perhaps the most negotiable aspect of a real estate offer. Both buyers and sellers can propose different prices, and finding a middle ground is essential. Be prepared to make counteroffers, but I encourage clients to also consider market conditions and appraisals, if available, when determining a fair price.
2. Closing Date: The closing date is usually negotiable, provided it aligns with both parties’ timelines and it works for the chosen attorney’s office. Sellers may prefer a quicker close, while buyers might need more time to secure financing or make arrangements. Flexibility in this area can be a valuable bargaining chip.
3. Repairs and Home Inspections: The extent of repairs and who will pay the cost is negotiable. Buyers often request a home inspection and can use its findings to negotiate repairs or price reductions. Sellers may agree to cover certain repairs or offer a repair credit.
4. Contingencies: Common contingencies include financing, appraisal, and inspection contingencies. Be prepared to discuss the terms and deadlines associated with each.
5. Inclusions and Exclusions: What is included in the sale, such as appliances, fixtures, or furnishings, can be negotiated. Sellers may choose to exclude certain items from the sale, while buyers may request specific inclusions.
6. Closing Costs: The allocation of closing costs is negotiable. In North Carolina, it’s common for buyers and sellers to split certain closing costs, but this can be negotiated to some extent.
7. Home Warranty: Buyers may request a home warranty as part of the deal. Whether the seller agrees to provide one or contribute to its cost can be a point of negotiation.
8. Earnest Money Deposit: The amount and handling of the earnest money deposit can be negotiated. This deposit demonstrates the buyer’s commitment to the deal and is held in escrow until closing, at which time it is applied toward the purchase price.
9. Possession Date: Sometimes sellers need extra time to move out, and buyers may agree to a delayed possession or a leaseback arrangement.
10. Due Diligence Money: The amount and handling of the due diligence money can be negotiated. This money paid to the seller, similar to earnest money, demonstrates the buyer’s commitment to the deal. However, its purpose is to ensure time for inspections, testing, etc. to occur. This money once paid is forfeit if a buyer backs out of a deal, unless the seller breaches the contract, and is applied toward the purchase price at closing.
11. Additional Inspections or Tests: Buyers can negotiate additional inspections or tests, such as radon, mold, or termite inspections, if they have concerns about specific issues.
A successful land or home purchase often involves give-and-take between buyers and sellers. Effective negotiation can lead to a more favorable deal for both parties! As real estate agents representing a client, we help to navigate the complexities of real estate transactions and ensure that your negotiations are legally binding.
Contact John Blevins today!
Phone: (336) 977-6569
Phone: (336) 977-6569