4 points to negotiate when buying a home
Published on September 17, 2019
When preparing to write the Offer to Purchase for a home, the buyer must talk with the owner and reach an agreement on various points.
It’s in the best interest of both parties to remain objective and level-headed. The goal of the negotiation is to find common ground. It’s not to make the other party’s life difficult or to gain the upper hand over them.
1. Selling price
The selling price is extremely important in the negotiations. The buyer wants to get a good deal and the seller wants the most money possible for the property.
The trick to negotiating skillfully is to justify your position with solid, verifiable arguments. Two good examples are the recent property sales in the area and the inspection report produced by a building inspector.
“Inclusions” are things that are included in the transaction, but that aren’t a constituent part of the property. For example, if a home is being sold with the blinds, light fixtures or appliances, this can be specified in the Offer to Purchase.
Inclusions can be negotiated. The buyer may agree on a particular price if the homeowner includes the refrigerator or pool table, for instance. These inclusions can often help create a transaction that makes everyone happy.
The buyer will discuss these conditions with the homeowner and decide on the timeline in which the conditions must be met.
4. Possession date
When can the buyer move in? The possession date must accommodate everyone.
On the one hand, the homeowner must find a new place to live. On the other, the buyers want to sell their existing home before moving into the new one. Buyer and seller must negotiate while taking into account their respective constraints and obligations.
To negotiate with confidence, you must be prepared. Before submitting the offer to purchase, the buyer can start thinking about the points mentioned above to have an idea of what he or she wants and be ready to talk about it all with the homeowner.