| Contract negotiation is a strategy that plays a major | | | | much money as you can put down. |
| role when selling or buying a home. Negotiating a home | | | | Mortgage Escape Clause - This is necessary from |
| buying contract includes a number of factors that | | | | your point of view as a buyer, especially if you are |
| include, among other factors, the price of the home, | | | | obtaining a mortgage loan, and for some reason the |
| financing, terms, and the date of possession. The | | | | loan does not come through. Without this clause, you |
| negotiations may, or may not, include repairs and | | | | will be legally obliged to purchase the house, even if |
| furnishings, or equipment. As part of the purchase | | | | you are unable to obtain financing. |
| contract, you need to negotiate the period of time you | | | | Real And Personal Property - The purchase contract |
| require to complete the inspections and investigations | | | | needs to be very clear whether the final purchase |
| of the home. | | | | price includes fixtures, furniture, built-in appliances etc, or |
| Points To Consider | | | | not. Real property is anything that is permanently |
| Of course as a buyer, when buying a home your main | | | | affixed to, or installed in the home. Everything else can |
| focus is always on the price. However, there are other | | | | be categorized as the personal property of the seller, |
| things to consider when negotiating the contract, such | | | | though the distinction between real property and |
| as: | | | | personal property is not a very well defined one. You |
| Cost Of Transaction - You need to consider the | | | | need to negotiate and clarify these things in the |
| various costs, such as the 'brokers' commission, cost | | | | contract very clearly. |
| of home inspection, cost of termite inspection, escrow | | | | Breach Of Contract - A contract to purchase a home |
| or attorney's fees, a title search, an owner's title | | | | is a legally binding document. If for any reason you |
| insurance policy, transfer taxes and recording fees', | | | | walk out of the contract that has once been signed, |
| among others. The costs towards all these vary, | | | | you are liable to lose your down payment. Similarly, the |
| depending on which part of the country the home is in. | | | | contract is binding on the seller too, if he tries to back |
| Who is responsible for paying what depends on the | | | | out of the deal for any reason. Ensure that the |
| local custom, and can be negotiated. | | | | contract specifies where the disputes need to be |
| Down Payment - Your real estate agent can guide | | | | settled. It could be in a small-claims court or be |
| you about how much down payment to offer to the | | | | presented for arbitration or mediation. |
| seller. It can vary from 5 percent to 20 percent of the | | | | It is advisable to go through a standard purchase |
| purchase price. If your down payment is substantial, it | | | | contract with your real estate agent, before making an |
| may show your seriousness about completing the | | | | offer of purchase. The standard clauses will prepare |
| transaction. The seller, of course, will like to have as | | | | you for what to expect, and help in your negotiations. |