The 3 Red Flags of a Real Estate Contract Negotiation Process
Buying a home is an exciting and great way to build wealth and stability. The process can become a bit complicated as each party tries to reach a mutual agreement. Negotiating to purchase a home can be difficult, but it is important. A house is often the largest asset a person will acquire. Buying a home should be a reason to celebrate. If you are negotiating for a home, there are a few signs you should be sure to watch out for in the process. Being aware of these 3 red flags of a real estate contract negotiation process could help you avoid an unfortunate situation.
Reluctance to Bargain
A home buyer will probably try to negotiate down the price of the home. This is fair, as the buyer is trying to get the best deal on your home.
If a seller is unwilling to negotiate a lower price, this could mean bad news for both parties. A seller who is unwilling to bargain will likely be difficult to work with through the whole process.
Naturally, the seller wants the highest price, and the buyer wants the lowest. Although the home may be worth its listing price, it is best to find a seller who is willing to be flexible. This will make the whole process flow more smoothly for all involved.
As Is or Not Open to Inspection
If a listing includes the phrase “as is”, it means that the buyer will not be able to negotiate who fixes what conditions at the property. If there are any outstanding problems with the property, the buyer will inherit them as their own.
This could be something small, like a hole in a wall, or it could be a major foundation repair. In such a case you can have the home inspected to find out what needs to be repaired. However, if a listing includes the phrase “not open to inspection”, you will not be able to perform an inspection before closing the deal. The latter may appear in a lot of foreclosures, but it is best to continue searching for another property.
Low Asking Price
If a home is listed at a low price, it could mean that the property is in need of major repairs. On the other hand, it could indicate that the seller is looking to initiate a bidding war. In either case, it is best to evaluate whether the property is worth fixing up or fighting for.
If you see a history of price reductions, it could point to nuances in the market and competition. This does not always mean there is something wrong with the property.
Staying Aware in the Negotiation Process
As both a buyer and a seller, there are some important things to look out for in the contract negotiation process. If either party is too stubborn, it could mean bad news for either party.
Additionally, a buyer needs to be aware of all potential problems before coming to an agreement. If you need assistance evaluating your contract negotiation, contact the Law Offices of Lisa Wills at (925) 463-9000 for a consultation.