What’s Up for Negotiation?
One of the more unique parts of purchasing real estate is the ability to negotiate the terms of the sale. It’s safe to say that, for most, especially first-time buyers, thinking that ‘putting an offer in’ on a house is as simple as bidding a price and that’s it. However, if you’re purchasing real estate in Wilmington, IL you’ll quickly learn that our local area uses a standard contract with dozen of other items that can be negotiated over. Here’s a list of just a few of those items. Keep this list in the back of your mind the next time we are viewing homes together. Doing so, you’ll be even more prepared to make an offer when the time is right.
1. Appliances and other personal property
In our market, it is not always apparent whether certain appliances are being sold with the home. One of the reasons for that is that appliances are negotiable items. Some sellers may only intend to leave certain appliances. Or perhaps will only leave them with an offer over a minimum price. This applies to both kitchen appliances as well as the washer and dryer.
It’s not just appliances but other personal property as well. Other common items that are negotiated over as part of the sale of a home include pool equipment, hot tubs, and other large items such as a pool table in the basement, that the seller is typically begging they can leave behind!
2. Closing date
Why negotiate over the closing date? Different people have different time constraints or sometimes none at all. Some sellers for example may be relocating for work, and have certain time dates. It is typical for most homes to close within 45 days after acceptance of an offer. That fact however does not mean all sellers want to sell their home as quick as possible.
When attempting to craft a more-competitive offer, we can take the sellers’ motivation into consideration and apply what we know to the expected closing date.
3. Repairs
It is possible to negotiate repairs as part of an agreement to purchase a home. While typically, these might be minor repairs in order to comply with certain loan requirements, these can be larger repairs too. I can recall at least twice when clients have successfully negotiated a NEW ROOF as part of their purchase. Unfortunately, this is not typically the norm. That shouldn’t discourage you from asking though when the time is right. A motivated seller may be willing to have certain items fixed if that’s what it takes to get the home sold.
4. Closing costs/seller credits
In Illinois, both buyers and sellers have closing costs including title fees, closing fees, attorney costs, taxes, and more. Many buyers elect to ask the seller to pay for some of these items. Doing so can greatly reduce the amount of cash needed to close. Depending on loan type, buyers can typically ask for anywhere from 3-9% of the sales price in closing costs. You can download the cheat sheet on max seller credits for your reference. This is just a cheat sheet, as each loan has its own caveats. You should consult with your loan officer for further details.
5. Home Warranty
In the Chicago area, a buyer can ask for a one-year home warranty as part of their offer. For those unfamiliar, this policy covers appliances, and items such as the furnace and hot water heater. If a covered item needs repairs during the warranty-period, typically a buyer can have the item fixed or replaced for an amount of under $100. I have personally seen buyers ask for policies ranging from $500 to just over $1000. Depending on the market conditions and the circumstances of the particular home, this is at least another area to consider when making an offer.
Conclusion
These are just a few of the many different specifics that home buyers and sellers can negotiate over. Some directly influence the sellers compensation when they receive their final check, while others instead simply change the circumstances or steps followed during the sale period. As we navigate the world of real estate, it’s crucial to recognize the individual quirks of each home and client. What might be a make-or-break point for one person could be a minor detail for another. At the end of the day, when you choose me as your real estate professional, I will help you through these and all other points of negotiation, tailored to your needs and goals. If you’re ready to embark on a seamless real estate journey, feel free to schedule a call with me. We’ll discuss your goals how we can make your homeownership dreams a reality
