Five key points of negotiation every buyer and seller should be ready for.

 

In real estate, everything is negotiable in theory. However, did you know that the Georgia standard contract has five key points of negotiation listed on the front page? These points are crucial to familiarize yourself with if you plan on buying or selling a home, so today I’m going to go over each of them in detail: 

 

“Discuss these items with your agent before heading to negotiations.”

 

  1. Price. This one is pretty straightforward. What is the buyer willing to pay for the property, and what amount will the seller accept? If you have a specific number in mind, make sure you discuss it with your agent before entering negotiations. 

 

  1. Closing date. This is when ownership of the property officially transfers, and it can be a big sticking point in negotiations. Usually, buyers want their sellers to close as quickly as possible. That means you can secure other concessions as a seller if you’re ready to move out of your home fast. If the deal is cash, you’ll probably need to be out of the home in 30 days, and if your buyer is using financing, you’ll have closer to 45 days. 

 

  1. Earnest money. How much money is the buyer willing to put down to show they’re serious about buying the home? I’ve seen some buyers offer nothing in earnest money while others have put down thousands of dollars.

 

  1. Due diligence period. This is the time in which a buyer can back out of a contract for any reason. Usually, this is when the buyer does their inspections. If they find something they don’t like, they can try to negotiate the price or ask for repairs. Buyers can back out of a contract during this period without losing their earnest money. However, they’ll usually have to give it up if this period expires.

 

  1. Due diligence fee. How much money are you willing to put up for your due diligence period? In our market, it varies. Many people allow a due diligence period without charging a fee, but others will expect compensation.

If you have questions about any of these points, please call or email me. I’d love to hear from you.