Things to Focus on During Negotiations
1. Earnest Cash
Negotiating in this area is crucial. As some appear to think, the earnest money deposit amount ($1,000) is not a common sum. Depending on the vendor, we either employ bigger or lower deposits. It is best practice to raise the earnest money deposit in order to demonstrate your stake in the deal if the seller is seeking a greater price and we are unable to meet that demand with our offer.
2. Escrow is closed.
Faster closings (as in the aforementioned example) will lessen some of the stress and uncertainty associated with selling.
Sellers' remorse is a possibility. They might agree to a cheaper purchasing price if you shorten the amount of time they have to think about it.
It shouldn't be a win-lose situation when negotiating. It's best to state this up front, but particularly throughout the rehab valuation
Negotiate outside of the renovation budget. Inform the seller that certain tasks can be completed more affordably.
But not all expenses can be saved. This can lower barriers when bargaining from a position of integrity.
4. Title Company
Some sellers choose to close with their own title company, which may seem ludicrous. Tell the seller that choosing the title company is usually done by the party paying the closing costs.
Offer the seller the option, as an alternative, of having the escrow agent or mobile notary meet them wherever they choose. It's a big victory for sellers.