Whether you're buying or selling a home, you're
going to have to go through the negotiation process. Today I will be outlining the four major stages of negotiations.
Ideally this will prepare you for anything that may come your way.
1.
Getting the offer accepted: You have agreed on
price, terms, and conditions. You have signed the contract and put it into
escrow.
2.
Appraisals: The bank needs to verify that the money
they're lending you is the right amount. This is why they come out and
determine a value for the home. If they don't think the home is worth what you
are paying for it, your loan could fall through. Appraisals can be made tougher in an appreciating market. (Click here
for my blog on appraisals.)
3.
Home inspection: This is where big hurdles can come out in
the purchasing process. The buyer pays for an inspection to ensure the home is
in good condition. This process requires the most negotiations because buyers
want everything repaired and sellers want a lot of things left alone. Usually, a seller will fix things that have
to do with the safety of the buyer, but it can be difficult to get things
moving along towards an agreement.
4.
Closing: This is the final part of the process, and you have
to be extremely careful with your finances at this point in time. If you go out
and buy new furnishings for your home, you could upset your debt to income
ratio and your loan could fall through at the last second. Just wait until you have the keys in your hands to transfer money or
purchase expensive items.
Hopefully this can help guide you through your real
estate negotiations without too much trouble. It can be a difficult process to
navigate without a real estate agent, so please don't hesitate to contact me if
you need assistance with this. I have plenty of real estate agents I can refer you to! skatz@vandykmortgage.com or 770-824-9777
I look forward to speaking with you!
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