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Two Negotiations

By
Real Estate Agent with The Gallery of Homes 20220028

There are two negotiation periods in some home sales. The primary negotiation takes place when the contract is agreed upon that includes the price, closing and possession. Buyers and sellers alike feel relieved once this first round has resulted in an agreement but there may be more negotiations to come if there are contingencies for financing, inspections or other things.

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The purpose of an inspection is for the buyer to receive an objective evaluation about the condition of the home and its components to identify existing defects and potential problems. The expense for inspections can be several hundred dollars and it’s reasonable for buyers to not want to spend the money before they find out if they can come to terms with the seller. From a different perspective, sellers want to know quickly if the buyer is going to reject the home due to the inspections.

Sometimes, buyers will expect sellers to make all of the repairs listed on the report and this is where the second round of negotiations begins. If the seller refuses, the negotiations can go back and forth until the other party accepts the offer on the table or the contract falls apart.

When purchasing a new home from a builder, it is expected for everything to be in working order; after all, it is new. However, it is reasonable to expect that existing homes, that are not new, have a different standard. While it’s understandable that buyers would want to be aware about major items that are not in “working order”, normal wear and tear of components based on its age should be expected.

In a highly competitive seller’s market, buyers might do whatever they can to get their contract accepted, realizing that there is another place to negotiate when they’re not competing with other buyers’ offers to purchase.

For this to be a WIN-WIN negotiation, both seller and buyer must feel good about the transaction. Neither party should feel that they have been taken advantage of.

 
 

Comments (2)

Jody Wall
BANCROFT REALTY LLC - Grand Prairie, TX
jodywallrealtor.com

I bought a new home and certainly expected the builder to make it right.  

  • The fire rating in garage for the tankless heater was not correct.  
  • They left a hole in the roof decking when they relocated the chimney.  
  • The wirlpool tub was not hooked up.  

It really depends on what it is.   

Aug 27, 2016 05:52 AM
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

Great post and very true.  It is frustrating when a buyer on a used home expects it to be brought to new home standards. But in a seller's market, we are often having sellers with a "take it or leave it" attitude and refusing to do any repairs - even those with health and safety issues.  The pendulum has swung to the sellers.  I remember short time ago it was the other way.

Aug 27, 2016 09:17 AM