The bargaining process is an unavoidable component of selling a home in Sacramento. Negotiating can be enjoyable for some home sellers who enjoy the back-and-forth drama. Others find it dull and taxing, and they just want it to be over with. Whichever camp you end up in, you’ll be better off if you’re prepared and know what to anticipate. With that in mind, let’s look at the six major bargaining topics that Sacramento home sellers should be aware of.
1. The Price
The first negotiation point Sacramento house sellers should be prepared for is the inevitable haggling over the sale price. Of course, sellers want to sell for as much as possible, and buyers want to pay as little as possible. Here’s how price negotiations typically go . . .
“It’s unusual for a seller to accept a buyer’s first offer and wind up with the same price amount on the contract. When residences are put up for sale, purchasers usually start with offers that are lower than the posted pricing. Consider it a beginning point for discussions. For example, on eBay, an item is put in an auction at a set price, and people begin to bid higher and higher from there. A property sale works similarly: you establish the price, the buyers offer what they believe it is worth, and the two sides speak through their real estate agents to come to an agreement that is fair to both parties.”
How the negotiations go depends in large part on the kind of market, whether it’s a seller’s or buyer’s market. The best course foremost house sellers is to lean heavily on their agent’s expertise in negotiating price. You can consult a Sacramento at (916) 507-2502 to discover more about this.
2. Closing Costs
Closing expenses, which typically range from 2% to 5% of the purchase price, are another significant bargaining point that [market city] home sellers face. Buyers frequently try to persuade sellers to cover all or part of these costs.
A seller may agree to pay some/all of the closing costs in lieu of making certain repairs or as a way to keep the sale price as high as possible. In any case, you can expect buyers to ask you to pay at least some of the closing costs.
Just be sure to consult your Sacramento agent before agreeing to anything. To discover more, just call (916) 507-2502.
3. Closing and Possession Schedule/Dates
A relevant negotiating issue for which Sacramento home sellers should be prepared is the timing of the transaction’s final features, such as the closing date and when the buyer actually takes possession.
The most common influencing factors here are:
- “[W]waiting on another house to close”
- ”[T]trying to hire movers”
- “[S]shifting out of an apartment or condo lease”
- Needing “extra time to vacate due to another home purchase or construction”
Whatever the reason, “negotiating flexibility regarding closing or possession dates is actually pretty standard.”
4. Cosmetic Fixes and Furnishings
House sellers also have to contend with buyers wanting to negotiate cosmetic fixes and/or keep furnishings and household items in place.
Buyers will try and can bargain anything, according to industry experts, including “furniture that precisely suits a room layout, light fixtures, regrouting sinks and showers, minor landscaping, cars, appliances, and even lawn care products.” Sellers may agree to such demands if they want to make a property more appealing to a buyer, don’t want to carry particular goods to a new place, or don’t use it frequently.”
5. Home Warranty
Buyers frequently request a home warranty from sellers, and “[i]t’s fairly normal for a seller to pay this expense ahead.” The seller pays the premium at closing, which is normally approximately $450-600, and the new homeowner is responsible for any claim deductible.”
Buyers are typically advised by their agents to negotiate anything related to safety, another reason for the home warranty request. Your Sacramento agent can advise you on the best course in this scenario.
6. Mortgage Loan Points
As we noted before, purchasers frequently bargain down the price, but they may also employ other strategies in this regard. House sellers in [market city] should be mindful of mortgage loan points as a negotiation point.
You may be asked to pay loan points on a buyer’s mortgage. Buyers frequently use tax benefits to persuade sellers to pay points on their mortgage, highlighting that it is a tax-deductible expense for sellers. The majority of the gain, however, goes to the buyer because it lowers the amount of interest she will have to pay. The buyer’s interest rate will be reduced for every point purchased.
The Advantage of a Sacramento Agent for House Sellers
These are the major negotiating points, albeit there are others. And in all of them, sellers can profit from and typically come out ahead by relying on their Sacramento agent’s negotiation skills. So, if you want to be one of the Sacramento house sellers who wins in talks, call us at (916) 507-2502 right now.