ln most residential real estate transactions there are two points where the buyers and sellers are polar opposites of each other – negotiating the purchase price and the terms of the sale; and once again when the home inspection report comes in and the buyers submit their request for repairs. Here’s a look at the polarizing aspects of these two epic events.
Negotiating the sales price and terms – This is the point where the buyers start the ball rolling by completing the Purchase Agreement and specifying the price they are offering, the length of the escrow period (aka – how long they want to take to close the deal,) disclose their financing arrangements, state the amount of their initial deposit, and state whether they want the fridge, the washer and the dryer. Obviously, the buyer wants to get the house for the lowest price possible, and the seller wants to get the highest price possible. So both agents sharpen their pencils and work with their respective clients to crank out the counter offers. The fun part is trying to make everyone think they’re a winner. The seller comes down a little, the buyers come up a little, each wanting to give the other as little as possible. The end point comes when one of them decides they want it badly enough to say “yes.” Or neither wants it that badly and someone finally says “no” and both move on to the next opportunity.
Negotiating the request for repairs – In the case where there’s finally a “yes” and you move forward, the next point of polarization comes with the Home Inspection Report and the subsequent buyers’ request for repairs. By this time, the sellers have usually delivered all of the required disclosures to the buyers. This package of approximately 80 pages covers a lot of territory. The Home Inspection Report is another 24 – 70 pages of information.Based on all of this, the buyers now have a clearer understanding of the condition of the home and all of its parts and pieces. Buyers who believe they paid top dollar for the house are often disappointed to learn that the air conditioner doesn’t come on, that there a mold-like substance growing under the water heater platform, and the pool equipment leaks. The sellers are also often disappointed to learn that their AC is broken, they’ve been living with mold for who knows how long, and that the pool guy didn’t let them know about the leaky pool equipment.Where do you go from here? The buyers want everything working perfectly and want to get rid of the mold before they move in. The sellers want to hang on to as many Benjamin’s as they can by avoiding making any repairs at all. So begins the next tug-of-war battle over what to do about the broken and damaged parts of the house. Sometimes this round of negotiations is more difficult than the initial contract negotiations. Yet, in most cases, the polar opposites find a way to reach an acceptable middle ground keep the purchase moving forward. Not without gnashing of teeth, sleepless nights, frantic calls to the AC guy, the general contractor, and pool guy. From the clients and their Realtors.
I'm Leslie Eskildsen, Realtor.
Email me. Leslie@MyMVHome.com
Helping you make the right move in Mission Viejo, Coto de Caza, Rancho Santa Margarita, Irvine, Laguna Niguel, Laguna Hills, San Juan Capistrano, San Clemente, Laguna Beach, Newport Beach, Dana Point, Corona Del Mar, and other Orange County communities.