Home Seller Guide
 Negotiating
The purpose of negotiating is to get an agreement. An agreement all parties can
be satisfied with. Negotiating is one of the most important factors when selling
a property in the Las Vegas real estate market today.
There are over 8000 licensed Realtors® in Las Vegas today. A large amount of
these agents work part time in order to supplement their income. It is important
that the seller has a good agent to interpret and negotiate an offer properly.
Home Selling Negotiations:
When a buyer makes an offer to purchase a home, there are many items that can be
considered and put into writing in the purchase offer. Most people think of
“price” when they think “negotiate”, but there are other items to consider, such
as;
Amount of earnest money deposit:
A purchase offer must be accompanied by “consideration”, which is generally a
personal check made payable to a firm in an amount from $1000 to $5,000 that
“seals the deal” when the contract terms are accepted by all parties. Most
earnest money deposits are $1000 or $5,000, but it is a negotiable issue. The
more money a buyer is willing to put down with the contract is an indication of
how “earnest” they are about completing the purchase. This check is not
deposited until there is a fully ratified contract, and then it is kept in an
“escrow account” separate from the real estate company’s operating funds.
Price vs. Points:
Some buyers prefer to purchase a home with the least amount of cash possible.
Depending on the situation ,some buyer agent's will make an effort to get the
seller to pay some of the buyers closing costs. This is neither good or bad, it
all depends on what each parties situation is. When the seller pays part of a
buyers closing costs, the buyer usually has to pay closer to or a higher price
that the seller is asking for. If the buyer pays their own costs, then they will
make an effort to negotiate on the asking price of the home.
Contingencies:
A “contingency” is a clause in the purchase agreement that only commits the
buyer (or seller) to complete the purchase only if and when certain conditions
are met. The purchase is “contingent upon...” those conditions. There are two
typical contingencies that all contracts include. One is a financing contingency
that says that the home must appraise for the agreed upon sale price, or the
buyer may be released from the contract, and that the buyer must qualify for the
mortgage loan. If the buyer does not qualify through no fault of their own the
buyer may be released from the contract and have the earnest money deposit
returned. The other standard contingency is the opportunity for the buyer to
have a professional home inspection at their expense.
Possession:
Usually possession of the home coincides with closing the purchase. When an
offer to purchase is written and the buyer is obtaining a loan, it is important
to check with the lender to establish a date that the loan will be finalized.
Closing date:
Unless the buyer is paying cash, it typically takes at least three to four weeks
for a mortgage loan to be approved and closed. There are many loans going over
the closing date, the reason being low interest rates, and many of the good
lenders are overburdened.
Price:
Finally, the price the buyer is willing to pay and the seller is willing to
accept is always negotiable. If price is the most important issue to the buyer
or the seller, then there is an effect on the other issues listed above.
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