Negotiate Terms and Contract

5. Negotiate Terms and Contract
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Making the Best Deal: Why Making the Deal is a Big Deal

Once you’ve found the home you want to place an offer on, the next step is reaching an agreement with the owner about the price, how and when you can buy it. Throughout this process, there are many important considerations that can impact your finances, tax situation, and legal obligations. When you consider that you will live with the decisions you make about these issues-perhaps for a long time-just how big a deal your home purchase is becomes obvious.
Smart Moves for Getting a Great Deal on a House 

Your Accredited Buyer’s Representative (ABR®) will help you navigate the way through much of the transaction process and will have firsthand knowledge of what to include in your negotiations, such as a home warranty. Remember, some questions are better left to another professional, so your ABR® may advise you to consult legal and tax experts. What is a Home Warranty?

Negotiating

Assess your negotiating position prior to making an offer. Here are some basic rules to help you. You are in a strong bargaining position (the seller will look favorably on your offer) if: 

*  You are an all-cash buyer.
*  You are pre-approved for a mortgage.
*  You do not have a house you need to sell, before you can purchase the home.  

With these factors in your favor, you may be able to negotiate a reduction on the listed price. On the other hand, in a “hot” seller’s market, if your “perfect” home comes on the market, you may want to offer the list price (or more) to beat out other offers. My Eight Best Negotiation Tips
 

It may also be helpful to find out why the house is being sold and if the seller is under pressure to close a deal quickly. Consider: 

*  If the house is vacant house and remains unsold it represents added expense.
*  If the sellers are divorcing or being transferred.
*  If the sellers are facing foreclosure and the home is a short sale.
What if the Property is a Short sale?