Negotiation Points for House Sellers in Houston – The bargaining process is an unavoidable component of selling a house in Houston. 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 Houston home sellers should be aware of.
1. The Price
The inevitable haggling over the sale price is the first point of negotiation for Houston house sellers. Of course, sellers want to get the most money for their property, while buyers want to spend the least amount feasible. This is how most price talks 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 given price, and then people begin to bid higher and higher. 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.”
The type of market, whether it’s a seller’s or buyer’s market, has a big impact on how the discussions go. The best course of action for most home sellers is to rely primarily on their agent’s negotiation skills. To learn more about this, contact a Houston at (713) 866-4000.
2. Closing Costs
Closing expenses, which typically range from 2% to 5% of the purchase price, are another significant bargaining point that Houston home sellers face. Buyers frequently try to persuade sellers to cover all or part of these costs.
In exchange for making specified repairs or to keep the sale price as high as possible, a seller may agree to pay some or all of the closing costs. In any event, buyers are likely to demand that you cover at least a portion of the closing costs.
Before agreeing to anything, make sure to consult your Houston agent. Simply contact (713) 866-4000 to learn more.
3. Closing and Possession Schedule/Dates
A relevant negotiating issue for which Houston 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 must also deal with buyers who want to negotiate cosmetic repairs and/or maintain existing furnishings and household belongings.
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 Houston 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 Houston should be mindful of mortgage loan points as a negotiation point.
You may be asked to pay loan points on a buyer’s mortgage. Negotiation points for house sellers in Houston, 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 Houston 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 Houston agent’s negotiation skills. So, if you want to be one of the Houston house sellers who wins in talks, call us at (713) 866-4000 right now.