Whether you’re looking for commercial or residential property, it is essential to choose property options, checking with the market. Also, you need to get some things in order before buying a property.
Here are some things to consider and negotiate before the purchase.
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#1. Closing costs
These are part of the common concessions that are part of a real estate deal and just one-time fees that are clubbed with the first or final payments of the property. On the buyer’s side, closing costs could be loan origination fees, title insurance, and appraisal fees. For the seller, it could be the transfer taxes, title insurance, and cumulative home warranty premiums. A homebuyer typically pays 2 -5 percent of the purchase price in the overall closing costs. One can ease the burden by including those costs in the purchase offer itself.
#2. Transaction-related taxes
Often transaction costs are counted under closing costs on the seller side. Most building cooperative boards charge transfer taxes and fees on the transfer of property to new buyers. If one cannot cover all closing costs, one can offer to pay transfer tax for the seller as a compromise, at least a part of it. According to Lendi, one is liable for stamp duty when a home sale is finalized in NSW. For example, if the property is valued at $800,000, one could incur $31,490 payable in stamp duty. Buyers could offer to pay part of the stamp duty here.
#3. Fixtures, appliances, and furniture
States have not stipulated everywhere if certain things are to be included in a home on a mandatory basis especially for a home sale, but light fixtures and appliances are included in the contract. It might not be obvious to homebuyers or the seller since they consider some appliances as theirs, if not stated in the contract explicitly. Similarly, buyers will always feel that fixtures are included in any home sale.
As a buyer, get everything that is included in the sale in the document including chandeliers and window treatments that may add a lot to the home. Also, if you do not want certain things that are being sold as part of the house, you may include that those appliances are removed from the home.
#4. Inclusion of Furniture
Furniture though is expected to leave the property but if as a buyer, you love the décor, negotiate a purchase of furnishings too. Sale of personal property needs to be mentioned in a separate contract than the home sale. The promise of $50,000 for furnishings, could entice buyers to be interested in the home offer that's average at best.
#5. Move date and leaseback deals
The move-in date can be a bargaining chip for both the buyer as well as the seller. If you’re not in a hurry, offer sellers a move-in time that is flexible, that will appeal to sellers who are yet to search for the next house to buy. Offer to lease the property back for some days. A leaseback allows the seller to look for a new home. The seller is expected to pay utilities and upkeep costs till they stay in the house along with rent, to cover mortgage costs before the buyer can occupy the property.
During due diligence, inspect the property for potential problems with its condition including leaky roofs, molds in the basement and the like. Any issues in the report can be brought up for negotiation. Buyers can ask sellers to make repairs or share the costs of the repairs or even reduce the sale price compared to repair damages. Ensure all the details are spelled out in the contract related to renovations, including a checklist to ensure all things are in top condition during the closing before the deal is complete.
Buyers need to get everything in order before purchasing a property. It is essential to ensure that all documentation, repairs, appliances and additional costs are clarified before the purchase is made.
About the Author
Hardik Oza is an SEO practitioner. He has been working in SEO since last five years and is also a contributor to well-known SEO communities like SEMRush and Social Media Today, Page One Power, Search Engine People and many more.