WHAT IS NEGOTIABLE WHEN BUYING OR SELLING A HOME?

Just had a neighbor ask me this question as I was getting into my car today... WHAT IS NEGOTIABLE WHEN BUYING OR SELLING A HOME?

ABSOLUTELY AWESOME QUESTION! Let's start at the beginning and work our way through the process.

Items that are negotiable during a real estate transaction:

LIST PRICE (negotiable between Seller and Realtor) Your agent will be prepared with the latest neighborhood stats and fair market value of the home but the final price to list the house for sale is decided between both the seller and their realtor.

COMMISSION PAID (negotiable between Seller and Realtor) The customary rate in Texas is 6%. That is split 50/50 between the Realtor listing the home and the Realtor that represents the buyer. We will always give the buyer's agent 3% no matter what the seller is paying in commission. We want to make sure the Realtors with buyers show you home! Also keep in mind, that if you ask your Realtor to lower their commission, that is taking away from marketing dollars that your agent will spend on your listing.

SALE PRICE (negotiable between Seller and Buyer) A buyer has seen your home and has submitted an offer. Most likely, the offer is below your asking price and they are ready to negotiate. This is the time for your agent to work their magic but the final sales price of the home must be agreed upon by both the seller and the buyer.

OPTION FEE (negotiable between Seller and Realtor) The sales price is set and now the buyers will give the seller a small amount of money to "hold" them home for them while they do inspections. The option fee can be a flat rate, $250, or it can be $25 per day with a 10 day max. This is a number your Realtor will suggest and the seller will agree.

NUMBER OF DAYS FOR THE OPTION (negotiable between Seller and Buyer) While taking a home "partially off the market" during an option period for a potential buyer is on the path to selling, we want to make sure it doesn't drag out. The average time for an option period is 7 to 10 days in Texas.

EARNEST MONEY PUT DOWN (negotiable between Seller and Buyer) The going rate is a minimum of 1% of the agreed upon sales price. This good faith money goes to the Title company that is handling the close and is applied back to the buyer at closing. In a case of multiple offers, a buyer can put down more earnest money to show the seller that they are really interested.

DOWN PAYMENT ASSISTANCE (negotiable between Seller and Buyer) Sometimes a buyer will be short on their down payment cash and will ask the seller for assistance. It is not customary in the transactions I handle but I have seen it before. This is entirely up to the seller if they want to apply part of the cash they are receiving back to the buyer's down payment in order to have the sale go through.

REPAIRS DONE OR MONEY OFF SALE PRICE (negotiable between Seller and Buyer) Once the inspection has been done, a buyer may come back with repairs they want done before buying the home. In this case, they may ask for the repairs to be performed by the seller of will ask for money off the sales price and will complete them on their own once they own the home.

HOW MUCH YOU PAY FOR THE 1 YEAR HOME WARRANTY (negotiable between Seller and Buyer) It is standard practice now to provide a one year home warranty with the sale of a home. This ensures that the buyer will have basic home issues covered and won't have a reason to come back to the seller, Realtors or Title company if something breaks. The home warranty prices vary depending on the size of the home, whether or not it has a pool, etc. Sellers may say they will cover the entire cost of the one year home warranty or they can decide to only pay a portion of it.

TITLE COSTS (negotiable between Seller and Buyer) It is customary for the seller to pay the title costs in Texas. They are the ones selling the home and it is in their best interest to provide title insurance in case their is a legal issue with the property. In some cases, the title costs can be split between the buyer and the seller.

If you have any questions about Buying or Selling, please feel free to call text or email any time! (281) 787-8915 or holly@houstonluxuryrealty.com

#hollythompsonrealtor #buywithconfidence #sellwithsuccess #houston #katy #sugarland #texas #homebuying #homeselling #realestate #communitymarketleader