Pricing negotiation process begins when the seller lists the house on the market. A buyer observes the details and makes an offer to the seller along with a deadline for response. There are hardly any cases when the seller accepts the buyer’s offer as it is. Both parties have to contribute for making a successful deal.
Once a seller receives the offer, he goes through it and makes the necessary amendments in writing. He highlights points that he does not agree with or which he doesn’t want as a part of the deal. He sends the agreement back to the buyer with a deadline. Other hindrances could surface in the buying process from the seller’s side such as the seller’s can’t leave the property unless their children complete school year, they want to keep the appliances for themselves, the gas grill you noticed could be an anniversary present from someone special, the birdbath could have sweet memories attached, the reasons could be infinite.
The buyer then may drop off some things from the list such as the birdbath or the gas grill but he would want to have an earlier closing date or the appliances or both. The agreement would again be sent to the seller for reviewing along with a deadline. The process goes on until both parties agree on common terms. Both parties have to be willing to let go off certain things to make the deal possible.
All the other negotiations are understandable but what happens when it comes to price? What if the buyer is maxed out? In this case, the seller can loan money to the buyer. For example, the seller prices the house at $105,000 but the buyer can manage only $100,000 there could be a problem. The deal cannot fall apart because of $5000. The seller lends the money for a 5 or 10 yr term at an interest rate agreeable by both parties. If you agree on such kind of purchase, be sure you hire an attorney for taking care of all the paper work.
You can put in a lot of creativity by thinking about various things when negotiating for a purchase deal. The negotiations are bound to continue unless both parties come to common terms or one party decides to quit the agreement. The realtor will play a key role in initiating the negotiations so be sure you make the right choice. If you have any suggestions, please post them below in the comments section.