Buyer Question 3: How Do We Negotiate & Complete A Successful Purchase Contract?!

We use the ‘F’ word in real estate everyday: fine print. That is the subject of today’s blog as we continue our series of the three most common questions that our buyers ask. While most current & prospective homeowners agree that house shopping is the fun part of the process… most feel quite the opposite about the paperwork! While we enjoy the thrill of the hunt as much as the next guy… we admit we sort of love the contracts too. There is something about making sure every ‘I’ is dotted, every ‘t’ is crossed and every buyer is in a GREAT position that makes us want to keep doing it all over again.

Don’t run away yet; this post is not a real estate dictionary or lesson in terms, it’s a simple checklist of how to make sure you feel great about the terms of the contract you are signing and having us present. And let’s face it, in this market chances are you will work through the preparation of more than one offer and contract… so once you have the first one dialed – it does get easier. So here we go...

How To Negotiate & Complete A Successful Purchase Contact

___ PRICE. You are thinking it, so yes, price is a main factor – but not the only factor to be aware of. Make sure you read ‘Does Winning Mean Overpaying?’ to see how we reach your magic number. Remember, the ‘best’ offer is often a combo of price PLUS solid financing and the most attractive terms (what can you offer the seller that no one else can). Don’t forget… buyer letters HAVE won offers, so do make it personal!

___ NEGOTIATIONS. We know what you are thinking – it’s a sellers’ market, can a buyer really negotiate anything? In short, yes. While many negotiations will center around price, there are always other items to navigate and conquer. Negotiations are truly a two-way street, and there are times we will ask you to slow down, look both ways and then give you some advice on which direction to go. The good news is – there is little we haven’t seen or heard of – so the negotiations that may feel absurd to you are what we live for. Creative strategies are our specialty.

___ FINANCING. Once the seller sees what you are going to offer… they want to know that you can actually deliver it. A conversation with your lender will help us establish what time frames are necessary for any contingencies that we advise (this is where home condition comes into play – click HERE for that buyer question!). We’ll be aggressive, realistic and straightforward because while other methods are used in the industry – they create bad relationships and even worse transaction experiences.

___ TIMELINE OWNERSHIP. You are about to move – you have enough to do besides run a calendar of dates with four different parties. We will own your the timeline, check in with each party (title company, lender, listing agent and YOU) to make sure everyone is on the same page, every step of the way. We can’t guarantee there won’t be a problem – but we can guarantee a reasonable solution if it happens.

___ SELLER RESPONSIBILITY REALITY CHECK. Clarity on both sides is key. We believe that buyers should not only know their responsibilities, but also understand what the sellers' are too. How long does the seller have to respond to your offer? What is the continued scope of property maintenance up until the closing date? What fixtures and appliances will come with the home? When will the final walk-thru take place and how will you handle any significant issues?

___ BUYER RIGHTS & BEYOND. Cold feet are normal… a little buyer’s remorse sometimes even sets in (it’s normal – it’s a BIG investment). But what are the actual ‘deal’ breakers? We will be very clear on what it means to remove contingencies, what your commitment is and when and how much is at risk if you change your mind. The #1 goal is always to make sure you understand what you are getting yourself into FIRST…. not jump into a contract and worry about how to get out later.

___ PEOPLE. Behind all the paperwork there is a raw human component to real estate. In every transaction at least two people (and often more) are uprooting their homes and making a big change in their lives. There are times when you will wonder if you ‘can’ or ‘should’ do something, or need guidance responding to a human component of the transaction. The good news is – we love people as much as we love paper and we will make sure communication is open, positive and proactive.

The bottom line is that a successful contract is rooted in answering all of the questions you have – and all the ones that we know will come up. Last but not least… you might hear us say ‘you can’t make a good deal with a bad character.’ Everything and everyone in the contract should be rooted in integrity – if we had only one job (read about all 8 HERE) in this process it would be to protect you, first and foremost. Anyone can throw together a contract with a price and some boxes checked... but not everyone can give you peace of mind along the way.

We hope you have enjoyed our three-part series on what you are wondering if you are like most of our buyers. Check back next week as we turn the tables and begin to explore what most of our sellers want to know...

All our best,

Mark & Jason