Knowing Your Real Estate Contract
Know your real estate contract is a good start.
Knowing the terms of a real estate contract is only a start. Going deeper, there should be the ability to negotiate those terms in the parameters of the local market. Understand, the terms will remain similar. However the negotiation of those terms will vary depending on the local market where the property is.
Question #5 – What happens when we get an offer?
Know that an offer is an opportunity to negotiate a real estate contract!
Hopefully, it’s a full price offer with minimal contingencies. That, however, is a rarity. Subsequently you want to know your contract goals. Also, you will want to know how to negotiate the contract to achieve those goals. Likely there may be some going back an forth with negotiations. Eventually buyer or seller will stop adjusting and stand at a certain spot. Then it’s up to the other to agree or walk away and move on. Practically speaking, this should never be “Buyer vs. Seller” to see who should get the best of the other. While knowing the real estate contract we all should be exploring to determine what each one is willing to do. Accomplishing what is necessary to agree on mutual terms does not have to be stressful. If it cannot be done, then it should be, “No hard feelings.” and move on to another.
What if I don’t like their offer?
For our part, we never like to walk away, rather we choose to make a counter offer. Always, you need to know that as long as a buyer is at the table, your real estate contract is a possibility. Even we make a bottom line counter offer, it’s is up to the buyer to walk away. From Zillow comes this advise; “Whether you’re selling or buying a home, establish a baseline for when you will walk away from a sale. As a buyer, you don’t want to spend so much on a home with no cash available for improvements and repairs. And as a seller you should know how much you want to make off the sale. With a measured and informed approach, counter offers can be your friend.”
It helps if you know your real estate contract
I like to talk through all the aspects of an offer and the subsequent repercussions. In this way the seller has a clear understanding of what they are doing. This helps to avoid any “What If’s down the road. An offer may not seem that good because of the price. However, fewer contingencies in the low offer contract may make for a sure and easy transaction. On the other hand, a high offer might not be the best because of multiple demands or contingencies by the buyer. Knowing and understanding your real estate contract will make hard decisions much easier. Every aspect and every option needs to be discussed and understood in order to take the next step in negotiating. If we come to a “MEETING of the MINDS” then both sign and we are under contract!