We have all heard the saying about the three most important factors one should consider when buying real estate: Location. Location. Location.
When it comes down to buying or selling a home, and actually completing the transaction, the three most important factors are: Negotiation. Negotiation. Negotiation.
Based on our experience, an estimated 90% of real estate transactions involve repair negotiations between the buyer and seller. Whether the repair is something wanted by the buyer or identified and recommended by the home inspector, both the buyer and seller should be willing to negotiate in order to complete the transaction.
Unless a repair involving the health or safety of the home is required by the appraiser, repairs can either be made by the buyer after the home closes or by the seller before closing. If repairs are made after closing, then the sellers can negotiate a credit to the buyers to help compensate for expenses involved in making the repairs.
If a repair is required by the appraiser, those repair must be made prior to closing.
As one can see, there is plenty of room for negotiation. As long as both parties are reasonable, then the transaction can close fairly quickly. However, if the buyer makes unreasonable demands or the seller is unwilling to make repairs or assist financially with repairs, then the deal may fall through and neither the buyer nor the seller will be satisfied with the outcome.
If the transaction is not completed, the seller has not sold his home, and the buyer will have spent nearly $2,000 on inspections, appraisals and other fees--only to walk away without the home.
Unfortunately, not all buyers and sellers are willing to negotiate or be reasonable. A buyer asking for a credit to pay for a new HVAC system to replace a 10 year old heat pump that is working properly will probably be met with strong opposition by the seller. However, if the HVAC system is 25 years old, the seller may be willing to help pay for a new system. In these instances, the parties should try negotiate in order to complete the transaction.
Unfortunately, we see transactions fall through all the time, sometimes because of $200 worth of cosmetic changes to a home requested by the buyers. Neither the buyers nor the sellers were willing to move from their positions, and the deal for a $200,000 home fell through. The sellers waited months more to sell their home, costing them additional time and money, while the buyers lost nearly $2,000 in fees and expenses--all because of $200 worth of cosmetic upgrades!
An experienced real estate professional can guide buyers and sellers as they negotiate repairs. Having facilitated thousands of real estate transactions over the years, Landmark Realty Services can be trusted to look out for your interests --whether we are representing the buyer or the seller.
Call Landmark Realty Services today at 304-842-5298 if you would like for us to help you sell your home or purchase a new one!