Home market shift has cause home buyers to focus on price as well as other things to make their home buying experience more attractive. Buyers need to better understand the parts of the contract to create a win-win environment for themselves. Buyers now have more inventory and less competition when purchasing a house which means they have greater opportunity to negotiate with sellers. Things buyers should consider negotiating with sellers:
Closing cost – These are fees buyers pay to close a real transaction. These fees are lender, appraisal, title search fees, taxes, etc. The amount of fees may arrange between 3-6% of the total loan amount. Now buyers have a better chance to negotiate these fees with sellers in order to lower the amount of cash they need to bring to table at closing.
Title fees – Title fees pay expenses incurred by title company to review, update, and insure a correct title policy is delivered too buyer. Buyer might consider negotiating for a title of their choice and request the seller to pay the fees.
Option period and fees – Buyer should allow enough time to review the following things: flood maps, zoning, determining if there are potential problems, and complete an inspection by a third-party inspector. After doing the above allow sufficient time to negotiate for needed repairs, etc.
Repairs and/or renovations - If repairs or updates are needed after the home inspection, negotiate for a cash settlement to be paid at closing. Be sure to get this negotiation completed before the end of option period. Cash settlement is a safer approach versus having seller make the repairs.
Personal and real property – Personal property known as fixtures that are not attached to the house or property. Real property items are items attached to house or property. Buyers who want to sweeten their purchase need to negotiate for fixtures. If you agree to purchase a fixture, be sure it is in writing and included as part of the contract.
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