Residential Real Estate Transactions - Negotiating Tips |
| A residential real estate transaction provides numerous opportunities for negotiations between the parties. |
| Residential Real Estate Transactions - Negotiating Tips Abe wants to buy a home that is listed for sale by David. Abe doesn't really believe the home is worth what David is asking for it. David is anxious to sell the home, but he needs to find another place to live before he leaves his home. The home is in a great location, but it needs a lot of repairs. David is hoping to get the best price possible, but he is realistic in his expectations. Both parties have in mind the points for negotiation. A residential real estate transaction provides numerous opportunities for negotiations between the parties. What is negotiation? Parties often use negotiation as a technique by which to come to an understanding. The parties may or may not be represented by real estate agents or attorneys. Negotiation takes place all the time in our everyday lives. We negotiate with our friends as to who will drive to a social event. We negotiate with our family members as to how we will spend our free time. Each one of us has extensive experience in negotiation. Factors to consider in negotiation In entering into a negotiation, ask yourself: * What do I want vs. what do I need? * What is my "bottom line"? * How does the other party see the situation? * What are the facts? * How much do I really want the house? * How much do I really want to sell the house? * Is the other party realistic in his or her expectations? * Should the timeline for closing the transaction be a part of the negotiations? The bottom line is don't be afraid to ask. Almost every aspect of a real estate transaction, including the costs associated with the real estate loan, is negotiable! |