Things you can negotiate when buying a property besides the price
As a Real Estate investor you need to have your negotiation skills polished to thrive in the industry and get the best possible deal.
While the price is the most important factor when buying a property, there are some other things you can negotiate with the buyer to keep things in your favor. Keep them in mind when you make your next great investment!
Home inspections + Repairs
Remember that a home inspection is a crucial step in the home buying process, as it helps identify any issues or defects with the property that may not be apparent during the initial viewing.
You can negotiate with the seller to pay for the home inspection, or you can split the cost with them. Additionally, you can ask the seller to fix any issues that are discovered during the home inspection or credit you the cost of repairs.
Appliances + Decor
When purchasing a property, it’s common for the seller to leave behind appliances and furniture, such as refrigerators, stoves, and couches. You can negotiate with the seller to include certain items in the sale price. Alternatively, you can ask the seller to remove unwanted items before closing.
Most sellers include a basic cleaning when they sell their property, however you can ask for them to include a deep cleaning to make sure no nooks and crannies get overlooked and that you are getting a completely clean property.
These extra costs can range anywhere from $500 to $1,500.
There are 2 things you can negotiate regarding the closing:
- Closing date
The default closing date is usually 30-45 days after the offer has been accepted. However, you can negotiate a different closing date that suits your needs. For example, if you need more time to secure financing, you can ask for a longer closing period. If you’re in a hurry to lease the property or start the make ready, you can request a shorter closing period.
- Closing costs
There are many fees associated with closing that can sometimes add up to 2%-5% of the value of the property. Closing costs can add up quickly, and it’s essential to negotiate with the seller to cover some or all of the costs. It’s also worth noting that some lenders may allow you to roll the closing costs into your mortgage, but this can increase your monthly payments.
Contingencies are conditions that must be met before the deal can be finalized. For example, a financing contingency stipulates that the purchase is contingent upon obtaining a mortgage loan. Another example is an inspection contingency that allows the buyer to back out of the deal if significant issues are discovered during the inspection. You can negotiate with the seller to modify or remove certain contingencies to make the deal more attractive.
By working with the seller and being flexible with your requests, you can improve your deal and make the home buying process smoother. Remember, negotiation is about finding a mutually beneficial solution, so be open to compromise and communicate your needs clearly.