As a veteran of the Pittsburgh real estate scene, Jason Cohen is well-versed in the tips and tricks of property negotiation. Here, he outlines a few points that would-be sellers should look into prior to sale.
Talking about money is rarely comfortable, especially if you don’t do so regularly. However, knowing how to negotiate a deal in the real estate industry can ultimately allow you to save thousands of dollars with each transaction that occurs. Although the process can be intimidating when you're working with another party, preparing for the conversation with a little property work and research can go a long way towards helping you get the best possible deal. If you want to make sure that you're ready, there are a few things to know before stepping up to the negotiation table.
- Home Repairs
Performing an inspection of the property that you want to buy or sell will give you a chance to better understand the value of the building itself. Hire a professional to inspect each part of the house, and consult with them afterwards to better understand the state of the property. Collaborate with the inspector to assess how much work the house will need, and whether the property has any flaws (ex. improper wiring, mold, poor roofing) that could affect its overall value.
Check to see if there's any furniture on the property that you want to be included with selling the home, which includes patio furniture or appliances in the kitchen. The buyer may want all of the furniture, allowing you to raise the price to reflect the value of what's included in the price of the home. Anything that is excluded will need to be listed in the final two-party contract.
- Financial Contingencies
Understanding the finance contingencies will allow you to better negotiate. Is the buyer paying upfront in cash? If so, you might be able to pull some strings to shorten the closing timeline complete the transaction quickly.
- The Closing Costs
Whether you're buying or selling a home on the market, knowing the closing costs will make it easier to determine if it can be negotiated. The buyer may ask that the seller covers a flat rate for the closing costs or a percentage of the total amount. Although the seller can pay for the closing costs, it also means asking for more money with the selling price of the house.
- Closing Date
Many people are unaware that the closing date can also be negotiated by sellers if they want to avoid the cost of owning the home for several more months. Buyers who purchase the home will avoid having to pay the following month's mortgage payment.