What is more important: Price or Terms?
Due to the costs involved in real estate, contract negotiations are a very important part of the real estate process for both the buyer and the seller. Before signing any real estate agreement both parties should fully understand exactly what it is they are agreeing to.
The price of the property is the agreement that both parties make in respect to how much money the buyer is willing to pay to the seller for the property. Negotiations would be simple and straightforward if the price the buyer was willing to pay to the seller was the only point in the negotiations to consider. There are also terms and conditions that both parties should be aware of and agree upon that can not only have an impact upon the total cost, but that also effect both the buyer and seller in other areas dealing with the process of purchasing the property.
Terms and conditions can involve many aspects of the sale such as the cutoff dates for inspections and approval of the inspection reports, who is responsible for making the repairs as a result of the inspections, representations and warranties that the seller may make to the buyer regarding the condition of the property, the closing of the escrow, earnest money and personal property inclusions (items that are to remain with the home after purchase) to name a few.
It is not only necessary that the parties come to an agreement on these points, but that they also understand who is ultimately responsible for what happens in each situation laid out in the agreement. Terms and conditions can be a powerful bargaining tool when negotiating the price of real estate and can also make or break a deal even when both the buyer and seller can come to an agreement on the purchase price. Having an experienced agent on your side who can help you navigate through the legal jargon and numerous terms and conditions that can be contained within contracts and agreements can not only put you in a better negotiating position when it comes time to make the best deal possible, but they can also save you from agreeing to things that could have big consequences later on down the road.
