Real Estate 101 - Real Estate Contract Negotiations

Many negotiations occur in the real estate process. It can be an emotional process for all parties in the transaction. This article discusses advice on negotiating offers for NC properties.

What to Know During Real Estate Contract Negotiations

Market Factors

The existence of a buyers versus sellers market will impact your potential leverage in negotiations. In a buyers market, purchasers have more leverage because of the availability of alternatives. Sellers may have to be more flexible in order to preserve a potential buyer. In a sellers market, home buyers will compete for listings and must be able to present their strongest offer.

Bargaining Power

Many factors can influence bargaining position. For instance, personal matters such as the absolute necessity to sell could make people believe that you may be more desperate. It is imperative to prevent this information from becoming public. The presentation of more than one offer may also shift who has more leverage. Understand your position prior to finalizing a strategy, since you may have little opportunity to change your position afterwards.

Focus on the Details

Negotiations involve more than sale price. Consider all components of a contract such as deadlines, addenda, escrow deposits, special terms, and financing terms. Some of these have advantages and disadvantages. Get advice from a real estate agent for advice on whether what you are presenting is fair or can be perceived as negative by the other party. Staying firm on particular matters can hurt more than help.

Professional Creativity

Real estate professionals can use their knowledge and suggest terms to aid the negotiations. Contracts can live or die based on the details and on the emotions of both individuals in the transaction. Real estate professionals can act as a cushion among parties and facilitate professional and courteous interactions.

Advice On Negotiating Offers For NC Properties

The key to better negotiations involve understanding the real estate market, recognizing your bargaining advantage or disadvantage, evaluating the terms of contracts, and employing guidance from a skilled real estate broker. It may not be possible to achieve every term you want. The hope is to have a contract that buyer and seller will both live with and for all parties to feel they were treated fairly. This advice on negotiating offers for NC properties is merely an introduction. Consult with a professional for additional guidance.