Negotiating when buying property

On Behalf of | Jun 10, 2020 | Real Estate |

Buying property is not like going to the store and purchasing any single item. The list price on anything — open land, a home, a business property, etc. — is just a starting point. You are free to negotiate as much as you want to seek out a deal that you believe is fair.

For instance, there are fees known as closing costs that go along with a transaction. You have to pay the title agency and more. It can add thousands to the process, which you need to bring to closing. To soften the blow at the moment — perhaps you’re starting a company and you want to keep as much capital as possible to run the business — you can negotiate by asking for the seller to pay the closing costs.

You can also negotiate on the cost of the property based on repairs. Maybe a home needs a new roof, and it’s going to cost from $20,000 to $30,000. You can ask the seller if they will A) replace the roof before the sale or B) take $30,000 off of the sale price so that you can use the money to repair the roof after you buy.

You can also offer things to the seller. Most contracts have inspection contingencies, for instance, saying the buyer can walk away if the building doesn’t pass. You may offer a price that is well below the asking price, but without a contingency. The seller gets the satisfaction of knowing the sale is final, while you get to save money that you could use to make any repairs that the inspection turns up after the fact.

Negotiating is important but can get tricky. Working with an experienced legal team may give you the edge.