You may think that offer price is the only factor of price negotiation when buying a house. However, there are several factors worth considering as you negotiate a deal with the seller. It is important to educate yourself about all the points of negotiation so that you can make an offer that results in a win-win situation for both, you and the seller.
Listing price
While buyers wish to get the maximum amount of waiver on the listing price, sellers set themselves a certain profit goal. Trying to negotiate a price below that level is futile as that would mean sellers might have to compensate the deficit from their own pocket. Since the cost is expected to be distributed over the length of a mortgage, buyers can have the listing price negotiated to a reasonable level before closing the deal.
Contingencies
Contingencies are conditions specified in an offer that must be satisfied before the deal can proceed. These could include such things as the completion of inspections or maintenance work. Buyers can choose to keep contingencies to a minimum as sellers are likely to appreciate an offer that has less strings attached to it. Since contingencies are a way for buyers to safeguard their interests, it is important to decide what you consider important and decide accordingly.
Closing costs
Any costs incurred during the transaction are known as closing costs. These are typically shared between the buyer and seller but buyers have the option to negotiate how they pay for their share. For instance, buyers could ask the seller to pay their share as well or cover part of the outstanding fees by deducting the cost from the total price. This would reduce the buyer’s immediate expenses and also decrease the costs needed to finance the total cost, thereby reducing monthly expenditure.
Consider all these factors when negotiating the price for your new house in order to ensure the maximum amount of savings at the time of the transaction as well as in the future. You can get in touch with me for any assistance or advice about buying or selling a home in Greater Boston. Feel free to call me or send me an email or get in touch on Facebook.
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