Wednesday, July 29, 2015

Negotiations Between Seller and Buyer

7/31/14 - Negotiations between Sellers and Buyers can extend beyond a sales price, and can be advantageous for both (or either) sides.

It’s an interesting fact that while there are certain costs and charges to escrow which are customarily paid for by the Seller and by the Buyer, the payment of all costs and charges in a transaction are negotiable.

Often times success at negotiating may depend on how motivated the parties are. For example, a Seller of real estate may be willing to pay some of the Buyers closing costs because he is very motivated to sell his property. Every day he retains the property may be costing him money, especially if the property is vacant. Offering a concession to the Buyer may enable a quick sale and in the end be in his/her best interest. This closing cost credit can also help the Buyer to come in with less money to make their purchase and to help them to obtain necessary financing. In the end, everyone wins!

TIP. It may be possible to increase the sales price to offset the burden of cost to the Seller on the payment of Buyers closing costs. This is usually done as a credit to Buyer towards Buyers non-recurring and recurring closing costs. Consult with your Real Estate professional who knows the current real estate market and can access the comparable values of properties in the area which will help to determine if the value of the property will allow an increase in the sales price.

Something to keep in mind when negotiating your next sale or purchase.

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