Negotiations are an inevitable part of real estate investing, and while to new investors it might seem like a daunting aspect, it really doesn’t have to be. Negotiations can be quite straightforward, especially when done after an inspection or a contractor’s bid is procured.
It’s A Good Idea To Negotiate After Inspections
This is because that once those two things are done, the property is officially under contract and the seller and buyer both are in the process of posturing to close. You just need to make sure to have an inspection contingency in the contract, as well as a resolution period.
There are many benefits of first going through a home inspection before negotiating, and the first is that you’ll know you have the sellers absolutely set on selling. Once a contract is set in stone, things can relax a bit.
Typically, waiting for an offer is the most stressful part of property listing. Negotiating for repairs usually means that the buyer has the power to ask for anything. However, as sellers know that the buyer can walk away at any time, negotiations become a real prospect.
Having A Home Inspection And Resolution Period Is Key
Offers that are made that are contingent on inspection and resolution period have the benefit of being able to wait with the due diligence before an offer is accepted. An offer can be made with the confidence of knowing that if anything goes awry, you’re still free to walk away.
If you ask for things that you want and do not end up getting them, you can also walk away. Anything that counts as a deal-breaker can mean you can terminate a contract if the seller is not willing to comply with what you’re looking for.
You can work together to determine which things need to be looked at, fixed, and replaced so that both parties end up walking away feeling good about everything. Buyers can also ask for money to be taken off the purchase price and ask that the seller use licensed contractors before closing.
Both Parties Benefit From This
You can start making offers, and once a property is under contract, you can get ahold of a reputable and licensed contractor to start getting bids for any work you want or need from the seller. That’s when you can start the negotiations.
Once you determine what is important for you, come up with a list of things that are absolutely non-negotiable. That will help you in the event that the negotiation starts going in a direction you don’t like, you can stick to your guns and only give in when it comes to aspects that are not as important to you.
